The Supreme court has put a hold on the National Appellate Tribunal’s (NCLAT) order which set aside Byju’s insolvency, after it approved the settlement between the edtech firm and the Board of Control for Cricket in India (BCCI) over sponsorship dues of Rs 15 crore.
“We are staying the (appeals tribunal) judgment," Chief Justice of India DY Chandrachud said in court as reported by Reuters.
The Supreme Court bench led by Chief Justice of India DY Chandrachud asked BCCI to keep the settlement amount in a separate account.
The next hearing will be on August 23.
The development comes after the NCLAT’s order was appealed in the Supreme Court by GLAS Trust- the trustee for lenders to which Byju’s owes $1.2 billion.
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The trustee told the apex court that the money that was used by Riju Raveendran, Byju's brother, to settle the dispute with BCCI was “tainted”.
Solicitor General Tushar Mehta, appearing for BCCI, opposed the appeal stating that Byju’s settlement with the BCCI over the dues will be null and void
Abhishek Manu Singhvi, the lawyer for Byju’s reportedly stated that putting on hold the tribunal's decision would revive the entire insolvency proceedings as per Reuters.
The consortium of lenders to whom Byju’s owes $1.2 billion have also filed a plea in the Bankruptcy court of Delaware seeking relief.
The edtech firm which was valued at $22 billion in 2022 has suffered a series of setbacks over the years including cash crunch, layoffs, boardroom exits, auditor resignations.
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It was earlier reported that if the insolvency proceedings does go through, it will result in thousands of employees quitting the firm and lead to the shutdown of the edtech’ services.
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