The Supreme Court has overturned the decision of the National Company Law Appellate Tribunal (NCLAT) which had approved a Rs 158 crore agreement between ed-tech firm Byju's and the Board of Control for Cricket in India (BCCI).
On Wednesday (October 23, 2024), the court has also ordered to deposit the amount of Rs 158.9 crore to be given for the settlement with the Board of Creditors. The case was being heard by a bench headed by Chief Justice DY Chandrachud.
What will change after the Supreme Court's decision:
- Rs 158.9 crore of the settlement will have to be deposited with the creditors of the company.
- Bankruptcy proceedings may start once again on Byju's.
- Byju Raveendran may lose control of the firm.
SC had put a stay on the agreement after the order of creditors.
Earlier on August 14, the Supreme Court, in a blow to edtech company Byju's, had stayed NCLAT's decision allowing the settlement and ordered to keep the settlement amount in a separate account.
US-based Glass Trust, representing some lenders of the Byjus Group company, had filed an appeal before the Supreme Court on August 7. In this appeal, the decision of the tribunal was challenged, in which Byju's and BCCI were allowed to settle the payment matter.
America based lenders had raised questions on the agreement…
- The lenders had asked NCLAT not to accept the agreement.
- His lawyer Mukul Rohatgi had called it a 'tainted agreement'.
- Rohatgi had said that the payment is being made with 'stolen money'.
- Byju and Riju conspire and steal 500 million dollars.
- Lenders had said that this is our money, which these people have withdrawn.
NCLAT had approved the Byjus-BCCI agreement The National Company Law Appellate Tribunal (NCLAT) on August 2 had approved the agreement between Byju's parent company 'Think and Learn' and the Board of Control for Cricket in India (BCCI).
This agreement between the two parties was signed on July 31. The edtech startup agreed to pay Rs 158 crore dues of sponsorship contract to BCCI. Byju's was to pay this amount on August 2 and August 9.
Control of the company again with Byju Ravindran NCLAT suspended 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 will now return to Byju Raveendran.
After the NCLT order of July 16, control was taken from the board of Byju Raveendran and the company. According to the Insolvency and Bankruptcy Code (IBC) 2016, the control of the company is taken over from the board of the company against which bankruptcy proceedings are initiated.
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related to BCCI and Byjus case…
1. Byju's ready to pay Rs 158 crore to BCCI: The company will pay in installments on August 2 and 9; One year old dispute ends
Edtech company Byju's has agreed to pay the outstanding amount of Rs 158 crore of sponsorship contract to BCCI. The lawyers of company founder Byju Raveendran gave this information in the National Company Law Appellate Tribunal (NCLAT) on July 31. Read the full news…
2. Bankruptcy proceedings will start against Byju's: NCLT approves BCCI's petition, the company did not pay ₹ 158 crore of sponsorship of Team India
The National Company Law Tribunal (NCLT) has accepted BCCI's plea to initiate insolvency proceedings against edtech company Byju's. This case is related to the sponsorship contract between Byju's and BCCI for the jersey of the Indian cricket team. Read the full news…
3. Supreme Court's stay on Byju's-BCCI agreement: NCLAT had approved the settlement, the case is related to Team India's jersey sponsorship.
In a blow to edtech company Byju's, the Supreme Court on August 14 stayed the NCLAT order which had allowed the agreement between the firm and BCCI. A bench led by CJI DY Chandrachud said that the payment of Rs 158 crore made by Byju's to BCCI will be kept in a separate escrow account. Read the full news…
4. Byju's founder said – I am not a fraud, I will make a comeback: Big investors are responsible for the net worth becoming zero, they left, hence the situation worsened.
Byju Raveendran, founder of edtech company Byju's, which is facing financial crisis, said that during difficult times, his colleagues left him, due to which the situation of the company had worsened. Raveendran said this in the virtual media briefing. Read the full news…
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