The Supreme Court has set aside the decision of the National Company Law Appellate Tribunal (NCLAT) which awarded a Rs. 158 crore contract was approved.
On Wednesday (October 23, 2024), the court also ordered that the settlement amount of Rs 158.9 crore be deposited with the Board of Creditors. The case was being heard by a bench headed by Chief Justice DY Chandrachud.
After objections from creditors, the SC stayed the agreement Earlier on August 14, in a blow to Baijas, the Supreme Court stayed the NCLAT decision and ordered the settlement amount to be kept in a separate account.
On August 7, the US-based Glass Trust, representing some lenders of Byjus Group companies, filed an appeal in the Supreme Court. In this appeal, the Tribunal's decision was challenged, allowing Byjus and BCCI to settle the payment issue.
US-based lenders raised questions over the deal…
- The lenders asked the NCLAT not to accept the agreement.
- His lawyer Mukul Rohatgi called it a 'tainted agreement'.
- Rohatgi said that the payment is being made with stolen money.
- Byjus and Riju conspire and steal 500 million dollars.
- The lenders said that this is our money, which these people have taken away.
NCLAT cleared the Byjus-BCCI agreement
The National Company Law Appellate Tribunal (NCLAT) on August 2 approved the agreement between Byjus' parent company 'Think and Learn' and the Board of Control for Cricket in India i.e. BCCI.
The agreement was signed between the two parties on July 31. The edtech startup agreed to pay BCCI Rs 158 crore in sponsorship contracts. Byjus was to pay this amount on August 2 and August 9.
Byjus Ravindran regained control of the company The NCLAT stayed the July 16 order of the National Company Law Tribunal (NCLT) to initiate insolvency proceedings against the company. However, after the decision, the control of the company has now returned to Byjus Ravindran.
After the NCLT order of 16 July, control was taken away from Baiju Ravindran and the company's board. As per the Insolvency and Bankruptcy Code (IBC) 2016, the control of the company is taken from the board of the company against which the insolvency proceedings are initiated.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
