Supreme Court Rejects Appeals from BCCI and Raveendran, Allowing Byju's Insolvency Proceedings to Continue
In a significant development, the ongoing insolvency proceedings against Byju's parent company, Think & Learn, remain active following the rejection of appeals by the Board of Control for Cricket in India (BCCI) and co-founder Riju Raveendran. The Supreme Court of India affirmed that only the Committee of Creditors (CoC) can approve the withdrawal of these insolvency cases after they are constituted.
The insolvency proceedings, initiated by Glas Trust, the trustee for lenders to whom Byju's owes $1.2 billion under a term loan facility, reflect deep financial and control disputes. The process was initially set aside due to a settlement, but was reinstated by the Supreme Court following an overturn of the settlement.
The BCCI and Raveendran had argued that their application under Section 12A of the Insolvency & Bankruptcy Code was filed before the CoC's constitution. However, the Supreme Court rejected this argument, upholding that the withdrawal decision lies with the CoC and not the tribunal or parties alone.
Meanwhile, Byju's founders are preparing a major legal counteroffensive, planning to sue investors and lenders—including Glas Trust—for at least $2.5 billion in damages. They blame these parties for causing substantial damage to their personal and business reputations and for the company's valuation collapse and insolvency amidst disputes over control of Think & Learn.
The National Company Law Appellate Tribunal (NCLAT) also upheld the National Company Law Tribunal's (NCLT) directions regarding the parties' settlement proposal being placed before the Committee of Creditors (CoC), which includes US-based Glas Trust. The bench of Justices J.B. Pardiwala and R. Mahadevan dismissed both the BCCI's and Raveendran's challenges to the NCLAT's April 17 verdict.
It is essential to note that the Committee of Creditors requires a 90% voting share approval to withdraw the Corporate Insolvency Resolution Process (as per Regulation 30A(1)(b)). This represents a complex, multi-jurisdictional legal battle centered on insolvency resolution and corporate control of Think & Learn, with the highest court reinforcing the regulatory process for withdrawal of insolvency proceedings.
The insolvency proceedings against Byju's parent company, Think & Learn, remain active due to the rejection of appeals by the BCCI and co-founder Riju Raveendran, reflecting deep business and finance disputes. The BCCI and Raveendran had earlier argued that their application for insolvency was filed before the Committee of Creditors (CoC) was constituted, but the Supreme Court dismissed this argument, asserting that the CoC holds the power to approve the withdrawal of these insolvency cases.
