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On August 14, Supreme Court had stayed the NCLATs' order allowing Rs 158.9 crore as settlement to be paid by edtech major Byju's to BCCI
The Supreme Court today has reserved its judgment on the plea by US-based creditor Glas Trust Company LLC challenging the National Company Law Appellate Tribunal order which allowed Rs 158.9 crore as settlement to be paid by edtech major Byju's to BCCI.
A bench of Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Misra has also directed the Resolution Professional to maintain status quo on the insolvency proceedings.
Solicitor General Tushar Mehta, appearing for BCCI told the court he was concerned about adverse consequences of the Court's orders on the scope of settlements in insolvency matters. He added that prior to the insertion of Section 12A in the Insolvency and Bankruptcy Code in 2018, settlements were treated by the Courts on a higher pedestal.
The top court had recently suspended the NCLAT's decision which set aside the insolvency proceedings against Byju's while issuing notice on the plea by Glas Trust.
On August 2, 2024, the NCLAT had approved the Rs 158.9 crore dues settlement with the BCCI and set aside insolvency proceedings initiated against Byju's. The decision paved the way for Byju Raveendran getting back in control of the firm.
The dispute between the BCCI and Byju's pertained to the sponsorship contract for providing jerseys to the Indian Cricket Team.
It revolved around a Rs 160 crore sponsorship contract scheduled to end in November 2023. However, the cricket board insisted on continuing the contract until March 2024 to facilitate the board in securing a new sponsor on board from the new financial year.
It was reported that following the financial trouble the company decided not to renew any of its contracts with BCCI, International Cricket Council (ICC) or (Fédération Internationale de football association) FIFA.
Glas Trust alleged that the money being paid to the cricketing authority by Riju Ravindran, brother of the company’s founder Byju Raveendran, was tainted.
Ravindran had agreed to pay off the company’s dues from his personal funds. Glas Trust is stated to be the trustee for lenders to which Byju’s owes US Dollar 1.2 billion.
Case Title: Glas Trust vs. Byju Raveendran
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