Byju Raveendran files caveat in SC after getting control of his firm

A day after the National Company Law Appellate Tribunal's (NCLAT) order gave Byju Raveendran control of his company, he filed a caveat in the Supreme Court to be informed if the US lenders decide to appeal against the order.

The insolvency resolution process against Byju's parent company Think and Learn was halted by the NCLAT on Friday when it accepted the settlement arrived at between Byju Raveendran and the Board of Control for Cricket in India (BCCI).

With this, company promoters, including Byju Raveendran, are in control of the firm.

A caveat petition is a notice that certain actions may not be taken without informing the person who gave the notice.

The plea was filed on August 3 after the appellate tribunal said that the settlement is being arrived at before the Committee of Creditors (CoC) could be formed. Considering that the source of the money (for settlement) is not in dispute, it did not have any reason to keep the company in the insolvency process.

The NCLAT noted that "money being offered by the largest shareholder and former promoter (Riju Raveendran) has nothing to do with the US lenders, which gives the court power to rule."

The court also said that Tushar Mehta, appearing for BCCI, had said they will not accept "tainted" money and the money is income generated in India. The money is coming from a proper channel, noted the court.

The US lenders had opposed the settlement, saying that the money paid to BCCI was "tainted" and "part of the $533 million of stashed funds."

They also asserted that Byju and Riju were both fugitives as they do not live in India anymore. “He is a fugitive, there is an ED investigation and look-out circular against him. He will not pay salaries, PFs, and rents but he wants the stamp of approval from a tribunal for settlement."

The US lenders said the Raveendran brothers are trying to delay the company's insolvency resolution process for six months to deteriorate the value of the company.

The bankruptcy court in India had recently admitted an insolvency petition against Byju’s by the BCCI over dues amounting to Rs 158 crore over cricket sponsorship deals.