Byju’s insolvency case: SC halts creditors’ meeting

On Wednesday, the SC questioned NCLAT’s decision to approve the settlement between Byju’s and BCCI.
Supreme Court
Supreme CourtFile Photo | PTI
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BENGALURU: The Supreme Court on Thursday reserved its verdict and directed the Insolvency Resolution Professional (IRP) of edtech firm Byju’s to maintain status quo and not hold any meeting of the Committee of Creditors. This means the company’s bankruptcy resolution proceedings will be delayed as the committee of creditors planned to meet on Thursday.

Byju’s US-based creditor Glas Trust Company had filed an appeal against the judgment of the National Company Law Appellate Tribunal (NCLAT) that allowed the edtech firm to pay Rs 158 crore settlement to the Board of Control for Cricket in India (BCCI).

On Wednesday, the SC questioned NCLAT’s decision to approve the settlement between Byju’s and BCCI.

A bench led by the Chief Justice heard the application filed by Glas Trust against Byju’s resolution professional, Pankaj Srivastava, for removing the US lender from the committee of creditors. Earlier, the steering committee of the ad hoc group of term loan lenders under the $1.5 billion term loan guaranteed by Think & Learn Pvt Ltd, said in a statement, “Pankaj Srivastava’s actions are unprecedented and entirely illegitimate.”

On August 14, 2024, Pankaj resumed office as the interim resolution professional of Think & Learn and formed the committee of creditors on August 21.

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