Supreme Court Overturns NCLAT's Ruling: A Major Setback for Byju's in Insolvency Proceedings Saga

The Supreme Court annulled NCLAT's decision that paused insolvency proceedings against Byju's, giving Glas Trust Company LLC standing to intervene. BCCI also faced a setback as Byju's dues settlement was overturned. Byju Raveendran's control over the ed-tech firm is at risk as legal proceedings continue.

In a significant judicial twist, the Supreme Court has overturned a verdict by the National Company Law Appellate Tribunal (NCLAT), which had previously halted insolvency proceedings against the education technology firm, Byju's. This move grants Glas Trust Company LLC, a US-based creditor, the legal standing to intervene in this high-stakes financial battle.

Equally impacted by the ruling is the Board of Control for Cricket in India (BCCI), as the court rescinded an NCLAT order that authorized a Rs 158.9 crore settlement paid by Byju's. The decision mandates the amount be deposited with the company's Committee of Creditors, further complicating the ongoing corporate insolvency resolution process.

With the court's directive, Byju's is compelled to navigate multiple legal challenges both domestically and internationally, as the bench highlighted the intricate web of existing litigations across jurisdictions, including proceedings in the Delaware Court and investigations by India's Enforcement Directorate.

(With inputs from agencies.)