Supreme Court Overturns NCLAT Ruling on Byju's Insolvency

The Supreme Court has overturned a decision by the NCLAT to close insolvency proceedings against Byju's. The case involved a settlement over Rs 158 crore between Byju's and the BCCI. The court has directed that the amount be kept in escrow as it deliberates the case further.

The Supreme Court on Wednesday overturned the National Company Law Appellate Tribunal's (NCLAT) decision to terminate insolvency proceedings against ed-tech firm Byju's. A settlement involving Rs 158 crores, agreed upon with the Board of Control for Cricket in India (BCCI), had previously been accepted by the NCLAT.

Chief Justice DY Chandrachud, leading the bench, mandated that the Rs 158 crore settlement be deposited into an escrow account managed by the Committee of Creditors. The court instructed the Insolvency Resolution Professional to maintain the current situation and refrain from convening any meetings regarding Byju's until the Supreme Court delivers its verdict.

The decision comes in response to Glas Trust Company LLC's plea challenging the NCLAT order. Previously, the Chennai branch of the NCLAT had sanctioned the settlement between Byju Raveendran and the BCCI concerning overdue payments. The Supreme Court previously questioned whether the NCLAT adequately considered all aspects when issuing its decision.

(With inputs from agencies.)