Supreme Reversal: Byju's Insolvency Saga Takes a New Turn

The Supreme Court of India overturned a ruling that allowed a settlement between Byju's and the Indian cricket body, favoring U.S. lenders who opposed it. The court stated the settlement process was procedurally incorrect since it bypassed the necessary insolvency channels.

The Supreme Court of India has reversed an appeals tribunal decision that had permitted a settlement between Byju's and the Indian cricket control body. This decision comes as a victory for the U.S. lenders who were against the settlement and sought a halt to the insolvency proceedings.

Byju's was entangled in insolvency proceedings following allegations from India's cricket board regarding unpaid sponsorship dues. Although a settlement was initially reached, the Supreme Court found the process flawed, as it bypassed the National Company Law Tribunal, to which such applications should be directed.

Glas Trust, representing the U.S. lenders claiming $1 billion from Byju's, had previously challenged the settlement. The educational tech giant, valued at $22 billion in 2022 before encountering significant hurdles, maintains its commitment to resolving the situation under the guidance of founder Byju Raveendran.

(With inputs from agencies.)