Highest The court on Thursday reserved its decision on the US company's plea against the NCLAT order to halt insolvency proceedings against educational technology company Byju's. A bench headed by Chief Justice DY Chandrachud asked the Insolvency Resolution Professional (IRP) to maintain status quo till the Supreme Court's decision in the matter. The bench also comprises Justice JB Pardiwala and Justice Manoj Mishra. The court considered the plea of US company Glass Trust Company LLC and asked the IRP not to proceed with the meeting of the committee of creditors to deal with the Byju's case.
The court raised questions on the decision of NCLT
The apex court, while hearing the matter on Wednesday, had questioned the decision of the Insolvency Appellate Tribunal (NCLAT), which had quashed the insolvency proceedings against Byju's and approved the payment of dues of Rs 158.9 crore with BCCI. The bench found that the National Company Law Appellate Tribunal (NCLAT) did not exercise its discretion while closing the insolvency proceedings against the educational technology company.
What did the court indicate
The court indicated that it may send the dispute back for a fresh decision. On August 2, the NCLAT had ordered the closure of insolvency proceedings against Byju's after approving a settlement of Rs 158.9 crore dues with the Board of Control for Cricket in India (BCCI). The decision brought a big relief to Byju, as it effectively put its founder Byju Raveendran back in a controlling position. However, the relief was short-lived as the apex court on August 14 stayed the NCLAT order, giving a setback to Byju. The case is related to Byju's default in payment of Rs 158.9 crore related to a sponsorship deal with the BCCI.
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