Supreme Court junks NCLAT decision to close insolvency proceedings against Byju's

Observing that the NCLAT did not apply its mind while closing the insolvency proceedings against the ed-tech major, the bench ordered fresh adjudication in the case.

New Delhi: The Supreme Court on Wednesday set aside the National Company Law Appellate Tribunal's (NCLAT) order which had halted the insolvency proceedings against edtech major Byju's and approved Rs 158.9 crore dues settlement of the company with the BCCI.

A bench of Chief Justice of India D Y Chandrachud and Justices J B Pardiwala and Manoj Misra directed the BCCI to deposit the settlement amount of Rs 158.9 crore with a committee of creditors (CoC).

The court's judgment came on an appeal by US-based creditor firm Glas Trust Company LLC against the NCLAT order.

The bench ordered fresh adjudication in the case after finding that the NCLAT did not apply its mind while closing the insolvency proceedings against the ed-tech major.

On August 14, the apex court had stayed the NCLAT order of August 2, which granted relief to the embattled ed-tech firm by setting aside the insolvency proceedings against it after approving its Rs 158.9 crore dues settlement with the BCCI.

The dispute between the BCCI and Byju's is related to the sponsorship contract for providing jerseys to the Indian Cricket Team.