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Supreme Court has also suspended the NCLAT's decision which set aside the insolvency proceedings against Byju's
The Supreme Court on Wednesday stayed an order of the National Company Law Appellate Tribunal, 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 suspended the NCLAT's decision which set aside the insolvency proceedings against Byju's.
Notice has been issued to Byju's on a plea of US-based creditor Glas Trust Company LLC against the NCLAT verdict while directing BCCI to keep Rs 158.9 crore received by it from Byju's in view of a settlement, in a separate account, till the next date of hearing, August 23.
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.
During the course of hearing, Solicitor General Tushar Mehta for the BCCI, opposed the stay on the NCLAT's order, as due to it, the settlement would go. Senior Advocate A M Singhvi on behalf of Byju's also contested the plea for stay.
Senior Advocate Shyam Divan, representing the appellant, contended the NCLAT's order was against the statutory provisions.
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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