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The Supreme Court questioned Byju’s decision to settle Rs 158 crore owed to the Board of Control for Cricket in India (BCCI) while leaving Rs 15,000 crore in total dues unpaid to other creditors ¹.
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The Court noted that the National Company Law Appellate Tribunal’s (NCLAT) order to close insolvency proceedings against Byju’s lacked sufficient analysis ¹.
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The Court hinted that the case could be sent back to the NCLAT for reconsideration, citing concerns over the tribunal’s decision-making process
The Supreme Court’s concerns stem from Byju’s significant debt of Rs 15,000 crore, with the Court questioning why the company chose to settle the relatively small amount owed to BCCI while neglecting other creditors. Chief Justice DY Chandrachud asked, “Today you (Byju’s) have Rs 15,000 crore due. Why did you pick up only BCCI and settle it? What about others?” ¹ The Court also expressed doubts about the NCLAT’s handling of the matter, stating that the tribunal’s reasoning was insufficient.
Byju’s had initially received relief from the NCLAT on August 2, which overturned the insolvency proceedings against the company. However, this relief was short-lived, as the higher court halted the decision’s enforcement on August 14 in response to an appeal filed by Glas Trust Company LLC ¹ ². The case remains ongoing, with the Supreme Court reserving judgment on the petitions filed by Glas Trust ³.
