Decide on BCCI-Byju's settlement in a week, NCLAT directs tribunal

The National Company Law Appellate Tribunal (NCLAT) on Friday directed the National Company Law Tribunal (NCLT) to decide on the settlement between Byju’s and the Board of Control for Cricket in India (BCCI) in seven days.

 

The Supreme Court had in October last year set aside the ~158 crore settlement reached between BCCI and the embattled edtech firm. The apex court nixed a NCLAT order which had upheld this settlement, as the amount was being paid by Riju Ravindran from his tax-paid own sources.

 

The apex court had then asked BCCI to transfer the money in an escrow account, sending the case back to NCLT.

 

Later, Riju Raveendran -- the largest shareholder in Byju’s and brother of its founder Byju Raveendran -- moved the NCLAT’s Chennai Bench against the ruling of the NCLT Bengaluru reinstating Glas Trust and Aditya Birla Finance as lenders of the edtech firm. US lenders had been removed by the RP despite commanding a 99.41% of voting share in the COC.

 

In the hearing on Friday, the NCLAT Chennai bench also disposed of the plea moved by Riju Raveendran challenging the NCLT Bengaluru decision to reinstate Glas Trust and Aditya Birla Finance to the committee of creditors of Byjus.

 

The NCLT had in July last year started the insolvency proceedings after BCCI alleged that Byju’s had defaulted on ~158 crore. But the NCLAT halted the proceedings against the firm after it claimed that it had reached an agreement to pay ~158 crore to BCCI towards outstanding dues.