NEW DELHI: The Supreme Court on Thursday reserved its verdict on the plea of Glas Trust, the administrative and collateral agent for the financial creditors of the corporate debtor Byju’s Alpha Inc, challenging the legality of the National Company Law Appellate Tribunal’s approval of the Rs 158-crore settlement between BCCI and Riju Raveendran, brother of Byju Raveendran.
Importantly, a bench of Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Misra ordered that “until the judgment is pronounced, the interim resolution professional shall maintain status quo and shall not hold any meeting of the committee of creditors”.
The SC had on Aug 14 stayed the Aug 2 order of the NCLAT, Chennai, approving the Rs 158 crore paid from Riju’s personal account to BCCI to settle the national cricket team sponsorship dues and asked BCCI to deposit the money in an escrow account after Glas Trust said that it was wrong on part of the tribunal to accord prioritised approval to the settlement when thousands of claims are pending against the distressed Byju’s Alpha and Byju’s ‘Think & Learn’.
BCCI had approached NCLT under the Insolvency and Bankruptcy Code (IBC) over a default of Rs 158.8 crore by Think & Learn. On July 16, the NCLT Bengaluru bench had directed initiation of corporate insolvency proceedings against Byju’s, which was once valued at $22 billion and nosedived to $1 billion post-Covid period.
Glas Trust said that it is the largest financial creditor of the corporate debtor with an outstanding debt of approximately Rs 8,500 crore (over $1.2 billion). “Despite this NCLAT accepted the settlement merely by relying upon an undertaking given by Riju Raveendran despite express objections from Glas that the source of funds for such settlement were questionable,” it said through senior advocate Shyam Divan.
For BCCI, solicitor general Tushar Mehta said IBC proceedings are for revival of the company and not for its closure.
