On August 14, the Supreme Court stayed the verdict of the National Company Law Appellate Tribunal (NCLAT) over insolvency proceedings against Ed-Tech firm BYJU’s, who was once the Indian team’s sponsor, and approved its INR 158.9 crore dues settlement with the BCCI. On August 22, the apex court refused to pass an interim order to prevent the Committee of Creditors (CoC) from holding a meeting concerning insolvency proceedings against the firm in question.
Though the restrictions come as a big blow to BYJU’S prospects of respite, Chief Justice D Y Chandrachud, Justices J B Pardiwala, and Manoj Misra have set August 27 as the final date for hearing the matter. Previously, US-based creditor Glas Trust Company LLC had appealed against NCLAT to the top court. The bench comprising the above-mentioned Justices added that further developments could be negated if it finds no merit in the US-based creditor’s appeal.
Also Read: US court rules in India’s favor; BCCI to settle pending INR 158 crore worth dues from BYJU’s
“Issue notice. Pending further orders, there shall be a stay of the impugned order of August 2 of NCLAT. In the meantime, BCCI shall maintain the amount of Rs 158 crore, which shall be realized in pursuance of a settlement, in a separate escrow account until further orders,” the bench had said as quoted by The Indian Express.
Formation of Coc is unfair: Abhishek Singhvi
For BYJU’s, senior advocate Abhishek Singhvi appeared before the court and the Board of Control for Cricket in India was represented by the Solicitor General Tushar Mehta. Both the parties affirmed that the CoC was formed in between and the US firm holds a 98 percent stake. Meanwhile, Singhvi, representing BYJU’s, argued that the constitution of CoC at 7 pm on August 21 would be unfair and could make the case go against the firm’s favor.
“This COC could have been constituted tomorrow with the court’s permission. This whole thing is done to make my argument irreversible,” said Singhvi.