Chennai, April 18
The National Company Law Appellate Tribunal (NCLAT) has set aside the appeals filed by the BCCI and Riju Raveendran, brother of Byju Raveendran, seeking withdrawal of insolvency proceedings against Byju's and to consider the settlement between the beleaguered edtech company and the BCCI.
They had challenged the order passed by the Bengaluru bench of the National Company Law Tribunal (NCLT), which had on February 10, 2025 directed to place their settlement offer before the new Committee of Creditors (CoC), in which US-based Glas Trust, the trustee for lenders to which Byju's owes $1.2 billion, is a member.
The Chennai bench of the NCLAT upheld the directions passed by the NCLT. It said that the settlement proposal was filed after the formation of CoC, hence as the provisions of section 12 A of the Insolvency & Bankruptcy Code, it requires the approval of the lender's body.
The Corporate Insolvency Resolution Process (CIRP) against Byju's was initiated on July 16, 2024, by the NCLAT, admitting a Rs 158.90 crore claim from the BCCI as an operational creditor of edtech major. An IRP was appointed also by the NCLT in this matter.
Later, a settlement was reached between the parties, and Byju Raveendran approached the NCLAT.