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The Supreme Court has temporarily halted meetings related to Byju’s insolvency case.
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The court is reviewing the legality of Byju’s Rs 158 crore settlement with the BCCI.
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The court questioned Byju’s decision to prioritize the BCCI settlement over its Rs 15,000 crore debt to other creditors.
The Supreme Court has temporarily halted Byju’s insolvency proceedings, citing concerns over the company’s settlement with the Board of Control for Cricket in India (BCCI). The court questioned why Byju’s prioritized paying Rs 158 crore to the BCCI while owing Rs 15,000 crore to other creditors, including US-based Glas Trust ¹. Byju’s legal team argued that the company has been sidelined in crucial decisions during the insolvency process, demanding a halt to the proceedings due to irregularities.
The court also examined Byju’s financial records, revealing a notable loss of Rs 8,104.68 crore as of March 2022 ¹. The company’s auditor resigned in September 2024, casting doubts on its financial stability. The Supreme Court bench, led by Chief Justice DY Chandrachud, expressed concerns about the lack of analysis in the National Company Law Appellate Tribunal’s (NCLAT) decision to close insolvency proceedings against Byju’s.
The case revolves around Byju’s dispute with Glas Trust, which disputed the payment settlement between Byju’s and the BCCI, alleging that the Rs 158 crore payment was obtained unlawfully ¹ ² ³. Glas Trust was ousted from the Committee of Creditors (CoC) by the Resolution Professional (RP), prompting the appeal. The Supreme Court’s final decision on the matter is still pending.
