Byju’s Insolvency Process: Supreme Court Overturns Tribunal Order

Aakhir Tak – In Shorts

1. The Supreme Court overturned NCLAT’s order that stopped insolvency proceedings against Byju’s.
2. The order was issued after a Rs 158.9 crore dues settlement with BCCI.
3. The court’s decision clears the way for resuming insolvency proceedings.

Aakhir Tak – In Depth

On Wednesday, the Supreme Court set aside the National Company Law Appellate Tribunal’s (NCLAT) order that halted the insolvency process against Byju’s. The tribunal had previously accepted a Rs 158.9 crore dues settlement between Byju’s and the Board of Control for Cricket in India (BCCI) and had stopped the proceedings. However, the Supreme Court’s ruling has now invalidated that decision, paving the way for the resumption of the insolvency process.

The insolvency case originated when BCCI initiated proceedings against Byju’s over unpaid dues. After a settlement was reached, NCLAT had approved the settlement, leading to the halting of the process. But with the Supreme Court’s recent decision, the insolvency process may recommence.

This ruling sets a significant precedent for Byju’s and other companies involved in insolvency proceedings, impacting how settlements and tribunal decisions are handled in the future.