Breaking news:
PM Modi Emphasizes Harmony in Eid Greetings, Rahul Gandhi Calls for Peace | Four Chinese Men Detained After Fleeing Bangkok Collapse Site With Documents | PM Modi Makes First Visit to RSS Headquarters Since Taking Office | Trump Says He’s Seriously Considering a Third Term
Logo

NCLAT Quashes Insolvency Proceedings Against Byju's, Approves Settlement with BCCI

The NCLAT has halted insolvency proceedings against Byju's, approving a settlement with BCCI, marking a win for founder Byju Raveendran but a setback for US lenders 

03-08-2024
image
   

The National Company Law Appellate Tribunal (NCLAT) has quashed insolvency proceedings against the edtech giant Byju's, potentially paving the way for a settlement with the Board of Control for Cricket in India (BCCI), as reported by Reuters.

This decision marks a significant victory for Byju's founder Byju Raveendran but poses a setback for US lenders who assert that the company owes them $1 billion.

Byju's, once valued at $22 billion in 2022, has faced numerous challenges, including boardroom departures, the resignation of its auditor, and a public dispute with foreign investors over allegations of mismanagement, which the company has denied.

The insolvency proceedings were initiated after BCCI claimed that Byju's failed to pay Rs 158 crore in sponsorship dues. The proceedings were halted after co-founder Riju Raveendran agreed to settle the dues by paying the amount himself.

The NCLAT stated, "The settlement between the parties is hereby approved and as a result thereof the appeal succeeds."

However, Glas Trust, representing some US lenders to a Byju's group company, opposed the cessation of the insolvency process, accusing the Raveendran brothers of using funds owed to lenders to pay off the cricket board.

In an August 1 court filing, Riju Raveendran asserted that he settled the cricket board's dues using "personal funds" and through the liquidation of personal assets.

Glas Trust retains the option to appeal the tribunal's decision to India's Supreme Court.

Image

IndiGo Slapped with Rs 944 Crore Tax Penalty, Vows Legal Battle

InterGlobe Aviation, the parent company of IndiGo, has been hit with a ₹944.20 crore penalty by th

Read More
Image

Sam Altman Urges Users to Slow Down as AI-Generated Ghibli Trend Overloads Ch

OpenAI CEO Sam Altman asked users to ease up on AI-generated images after an internet frenzy over Gh

Read More
Image

Prices of Government-Regulated Medicines Set to Rise by 1.7%

The cost of essential medicines, including those for cancer, diabetes, heart conditions, and antibio

Read More