The Supreme Court has asked why crisis-hit Byju's chose to settle its dues only with the BCCI despite being in Rs 15,000 crore debt. "The company is in debt of Rs 15,000 crore. When the quantum of the debt is so large, can one creditor (BCCI) walk away saying one promoter is ready to pay me," the CJI had asked.
"Why pick up BCCI and settle with them only from your personal assets," the bench had said, adding "The NCLAT accepts this all without applying its mind to it." While senior advocates Abhishek Singhvi and N K Kaul appeared for Byju's, Sibal and Divan represented the US firm.
The NCLAT, on August 2, granted relief to the embattled ed-tech firm by setting aside the insolvency proceedings against it after approving its Rs 158.9 crore dues settlement with the BCCI. The verdict had come as a huge relief for Byju's as it had effectively put its founder Byju Raveendran back in control.
However, the relief remained short-lived as the top court, on August 14, termed the NCLAT verdict as "unconscionable" and stayed its operation while issuing notices to Byju's and others on the appeal of the ed-tech firm's US-based creditor Glas Trust Company LLC against the judgment of the insolvency appellate tribunal.
The top court also directed the insolvency resolution professional (IRP) to maintain status quo and not to hold any meeting of the committee of creditors (CoC) in the matter pertaining to insolvency proceedings against ed-tech firm Byju's. The top court also reserved its verdict on a plea of US firm Glas Trust Company LLC against the verdict of National Company Law Appellate Tribunal (NCLAT) setting aside the insolvency proceedings against Byju's and approving its Rs 158.9 crore dues settlement with the BCCI.
"The arguments have concluded. The judgement is reserved. Until the judgment is pronounced, the interim resolution professional (IRP) shall maintain status quo and not hold any meeting of the committee of creditors (CoC)," a bench comprising Chief Justice D Y Chandrachud and justices J B Pardiwala and Manoj Misra said.
(With inputs from PTI)
