New Delhi: In a big relief to Byju’s, the National Company Law Appellate Tribunal (NCLAT) on Friday set aside the insolvency proceedings against the embattled edtech firm after approving its settlement with the Board of Control for Cricket in India (BCCI) in connection with the repayment of dues amounting to over Rs 158 crore.
The order came with a rider that in case of failure of timely payment of the dues on the specific dates submitted in the undertaking, the insolvency proceedings would be revived automatically. The NCLAT also set aside allegations by the US-based lenders of the edtech firm which claimed in the appellate court that the repayment to BCCI was ‘tainted’ and funded with ‘stolen’ money.
The appellate court maintained that the lenders failed to provide any evidence to substantiate their claims. “In view of the undertaking given and the 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 of the NCLAT in its order in the open court.
The undertaking states that Byju’s founder Byju Raveendran made a payment of Rs 50 crore on July 31. Another Rs 25 crore will be paid by Friday, and the remaining amount will be paid through RTGS on August 9.
Byju’s accumulated the dues under jersey sponsorship deals with the BCCI. The appellate tribunal had asked Byju’s to file an affidavit or an undertaking to clarify that the money due to its financial creditors will not be used to pay its operational creditors such as the BCCI.
On July 16, the Bengaluru bench of the NCLT admitted an insolvency plea filed by the BCCI against Think and Learn Private Limited, the parent company of Byju’s. On July 23, Raveendran filed an appeal before the Chennai bench of the NCLAT in the matter.