Mumbai, Aug 3: In a major relief to Byju’s, the NCLAT on Friday set aside insolvency proceedings against the troubled edtech major over a sponsorship deal and approved a Rs 158 crore settlement with the Board of Control for Cricket in India.
The National Company Law Appellate Tribunal (NCLAT), however, passed the order with a caveat that any failure to make payments on the specific dates mentioned in the undertaking would automatically lead to a revival of the insolvency proceedings against Byju’s.
The appellate tribunal also dismissed the allegation of round-tripping levelled by Byju’s US-based lenders, saying they failed to provide any evidence for the same.
The tribunal further said the money was paid by Riju Raveendran (brother of Byju Raveendran) through sales of his shares.
“In view of the undertaking given and affidavit, the settlement between the parties (is) approved and as a result appeal succeeds and impugned order (passed by the NCLT) is set aside,” said a two-member Chennai bench in its order in the open court.
As per the undertaking, Riju Ravindran has made a payment of Rs 50 crore on July 31 against the outstanding dues owed by Byju’s to BCCI. Another Rs 25 crore will be submitted on Friday, and the rest of Rs 83 crore on August 9 through RTGS.
The NCLAT was hearing a petition filed by Byju’s, challenging the initiation of insolvency proceedings against parent company Think & Learn.
On July 16, the Bengaluru bench of the National Company Law Tribunal (NCLT) directed the initiation of Corporate Insolvency Resolution Proceedings (CIRP) against Byju’s, admitting the plea filed by the Board of Control for Cricket in India (BCCI).
The BCCI had approached the NCLT under the Insolvency and Bankruptcy Code (IBC) over a default of Rs 158.9 crore by Think & Learn — once India’s most valuable startup worth USD 22 billion.
The NCLT has suspended the board of Think & Learn as per the provisions of the IBC and appointed an interim resolution professional (IRP) to take care of the debt-ridden firm.