Supreme Court Revokes NCLAT's Byju's Verdict

The Supreme Court overturned the NCLAT ruling that halted insolvency procedures against Byju's. The decision mandates the BCCI to deposit Rs 158.9 crore with a creditors' committee, asserting Glas Trust Company LLC's right to intervene. The court reproached NCLAT for improper use of its powers.

In a landmark decision, the Supreme Court has set aside the National Company Law Appellate Tribunal's ruling, which had halted insolvency proceedings against the troubled ed-tech firm, Byju's.

The bench, led by Chief Justice D Y Chandrachud, instructed the Board of Control for Cricket in India (BCCI) to deposit the Rs 158.9 crore settlement amount with a committee of creditors, highlighting that the US firm Glas Trust Company LLC has the legal standing to intervene in such proceedings.

Furthermore, the court criticized NCLAT for overstepping its authority, stating it misused its discretionary powers, and emphasized the adherence to legal provisions in corporate insolvency procedures should be rigorously followed.

(With inputs from agencies.)