The Supreme Court has reportedly questioned the preference given to the Board of Control for Cricket in India (BCCI) by the ed-tech giant Byju’s amidst ₹15,000 crore debt crisis. The court has criticised the National Company Law Appellate Tribunal (NCLAT) for closing insolvency proceedings against Byju's without due diligence.

Byju’s recently secured relief from the NCLAT after settling ₹158.9 crore in dues with the BCCI. This development provided a temporary relief for the company and its founder, Byju Raveendran.

However, the Supreme Court has now intervened, staying Byju’s operations and questioning the fairness of the settlement.

On August 14, the Supreme Court halted the NCLAT’s order that had set aside the insolvency proceedings against Byju’s after approving a ₹158.9 crore settlement with the BCCI. The court instructed the BCCI to deposit the settlement amount in a separate escrow account pending further orders.

The supreme court has now highlighted that Byju’s is burdened with ₹15,000 crore debt. The settlement with the BCCI has raised concerns about potential discrimination against other creditors.

The Supreme Court has hinted that it may send the case back to the NCLAT for further review. The court has emphasised the need for the appellate tribunal to carefully consider the circumstances and ensure a fair distribution of resources among all creditors.

The US-based creditor, Glas Trust Company LLC, has appealed the NCLAT’s decision, arguing that the settlement with the BCCI was unfair and that the insolvency proceedings should continue. Byju’s and the BCCI have defended the settlement, claiming that it was made using personal funds from his brother Riju Raveendran and that the NCLAT’s decision was justified.

The Supreme Court’s hearing which began on September 25 on the matter is ongoing, and its final decision will have implications for Byju’s future and the rights of its creditors.

Also read :

Byju’s to shut 200 tuition centres in cost-cutting move