The Supreme Court on Wednesday has scheduled a hearing for September 17 on an appeal filed by US-based creditor Glas Trust Company LLC.
This appeal challenges a ruling by the National Company Law Appellate Tribunal, which had halted insolvency proceedings against ed-tech firm BYJU’s and approved a settlement of ₹158.9 crore with the Board of Control for Cricket in India (BCCI).
A bench led by Chief Justice D Y Chandrachud, alongside Justices J B Pardiwala and Manoj Misra, was asked by several lawyers to expedite the case due to recent developments. Senior advocate NK Kaul, representing BYJU’s, emphasized the urgency of the matter, which was echoed by Solicitor General Tushar Mehta, representing the BCCI, and senior lawyer Abhishek Singhvi, also for BYJU’s.
Kaul requested the court to hear the current plea alongside another case set for September 17, or to advance both hearings to an earlier date. Chief Justice Chandrachud responded, saying, “We will hear both the pleas on September 17.”
Senior advocate Shayam Divan, representing the US-based creditor, also agreed to have both matters heard together on that date.
On August 22, the Supreme Court had declined to pass an interim order preventing the Committee of Creditors (CoC) from holding any meetings related to the insolvency proceedings against BYJU’s. The court scheduled a final hearing for August 27 but noted that any developments in the meantime could be reversed if the US creditor’s appeal against the NCLAT ruling had merit.
The case originated from BYJU’s failure to pay ₹158.9 crore to the BCCI, tied to a sponsorship agreement. On August 14, the Supreme Court temporarily stayed the NCLAT’s decision, which had favored BYJU’s by halting the insolvency proceedings and approving the settlement with the BCCI. The court found the NCLAT ruling to be “unconscionable” and issued notices to BYJU’s and other involved parties.
In an earlier hearing, the court directed that the ₹158 crore settlement amount be held in a separate escrow account until further notice. “Pending further orders, there shall be a stay of the impugned order of August 2 of NCLAT. In the meantime, BCCI shall maintain the amount of ₹158 crore, which shall be realized in pursuance of a settlement, in a separate escrow account until further orders,” the bench had stated.
The NCLAT’s decision to approve the ₹158.9 crore settlement with the BCCI had provided significant relief to BYJU’s, allowing founder Byju Raveendran to regain control. However, the court’s stay has put this resolution on hold.
BYJU’s had initially signed a “Team Sponsor Agreement” with the BCCI in 2019, gaining rights to display its branding on the Indian cricket team’s kit. Although BYJU’s made the required payments until mid-2022, it defaulted on the ₹158.9 crore owed to the BCCI. The default led the BCCI to initiate insolvency proceedings, which BYJU’s sought to settle.
On July 16, the Bengaluru bench of the National Company Law Tribunal (NCLT) admitted BYJU’s parent company, Think and Learn, into the insolvency resolution process after the BCCI’s plea regarding the unpaid dues. The NCLT had also suspended BYJU’s board of directors, frozen its assets, and appointed an interim resolution professional to manage the company’s operations.
US-based lenders have raised concerns that the settlement funds may be diverted from the credit extended to BYJU’s.
