Supreme Court nixes BCCI, Riju Raveendran pleas on settlement for Byju's

The Supreme Court dismisses the appeals of BCCI and Riju Raveendran to withdraw insolvency proceedings against Byju's parent company, Think and Learn Private Limited, over unpaid sponsorship dues

The Supreme Court on Monday dismissed the appeals of the Board of Control for Cricket in India (BCCI) and Riju Raveendran to withdraw insolvency proceedings against Byju's parent company, Think and Learn Private Limited. The National Company Law Appellate Tribunal (NCLAT) had, in April this year, set aside the pleas of BCCI and Riju Raveendran challenging the blockage of the withdrawal of insolvency proceedings against the ed-tech company.

 

The NCLAT judgment held that the application for the withdrawal of the insolvency process of Think and Learn required approval from 90 per cent of the Committee of Creditors (CoC). The case revolves around a settlement between Think & Learn Pvt. Ltd. (TLPL) and the BCCI, which had initiated the insolvency process over unpaid sponsorship dues in July 2024.

   

According to the appeal filed in the NCLAT, Byju's promoters had reached a settlement with BCCI in August 2024, depositing the full settlement amount in escrow. However, foreign lender GLAS Trust Company LLC, claiming to represent term-loan lenders owed approximately $1.2 billion, intervened to block the withdrawal. Other lenders also objected to the settlement later. Byju's and BCCI challenged this in the Supreme Court. 

The counsel of BYJU’S Founders said, "It is disappointing that the Hon'ble Supreme Court did not rule in favour of the termination of BYJU's bankruptcy. The termination would have benefitted millions of students who are being deprived of BYJU'S learning system, and thousands of employees. We are examining the implications of today’s order and will decide the future course of action after due consideration. BYJU’S Founders will not stop their efforts to terminate the company's bankruptcy and remain confident that eventually justice will be found through the courts."