The Supreme Court on Thursday has reserved its verdict on a plea filed by US firm Glas Trust Company LLC challenging the National Company Law Appellate Tribunal (NCLAT) order that halted insolvency proceedings against ed-tech company Byju’s.
A bench led by Chief Justice D.Y. Chandrachud instructed the insolvency resolution professional (IRP) to maintain the status quo until the court issues its judgment.
The bench, which included Justices J.B. Pardiwala and Manoj Misra, directed the IRP not to proceed with the committee of creditors’ meeting regarding the Byju’s case. During a hearing on Wednesday, the Supreme Court scrutinized the NCLAT’s decision to set aside the insolvency proceedings and approve Byju’s settlement of ₹158.9 crore in dues with the Board of Control for Cricket in India (BCCI).
The bench noted that the NCLAT appeared to have failed to adequately consider the implications of closing the insolvency proceedings and suggested that the matter may need to be sent back for reevaluation.
On August 2, the NCLAT had granted significant relief to Byju’s by nullifying the insolvency proceedings and endorsing its settlement with the BCCI, effectively reinstating control for founder Byju Raveendran. However, this relief was short-lived.
On August 14, the Supreme Court described the NCLAT’s decision as “unconscionable” and stayed its implementation, issuing notices to Byju’s and other involved parties in response to Glas Trust Company LLC’s appeal against the NCLAT ruling.
