SC stays NCLAT’s verdict on settlement of dues between Byju’s and BCCI | Company News
A day after the NCLAT order gave Byju Raveendran control of his company, he filed a caveat in the Supreme Court to be informed if the US lenders decided to appeal against the order | (Photo: Reuters)
The Supreme Court on Wednesday stayed the National Company Law Appellate Tribunal (NCLAT) order that allowed a settlement between Byju’s parent company, Think and Learn, and the Board of Control for Cricket in India (BCCI) for Rs 158 crore.
The money that Byju’s has paid to the BCCI will be kept in a separate escrow account, a bench led by Chief Justice of India (CJI) DY Chandrachud said.
Appearing for the BCCI, Solicitor General Tushar Mehta argued that it would be detrimental to put a stay on the NCLAT proceedings at this stage. However, the court stayed the settlement.
Byju’s US-based lenders had opposed the settlement approved by the appellate tribunal on August 2. They told the NCLAT that the money being used for the repayment was tainted, as it was part of $533 million that had gone “missing.”
Riju Raveendran, also a Byju’s board member, told the NCLAT that the money paid to the BCCI was “clean.” His counsel informed the court that the money paid to the BCCI was not part of the “missing” $533 million, as alleged by the lenders. The missing money is at the heart of a dispute between the US lenders and Think and Learn.
A day after the NCLAT order gave Byju Raveendran control of his company, he filed a caveat in the Supreme Court to be informed if the US lenders decided to appeal against the order.
The lenders had moved the Supreme Court challenging the appellate tribunal’s verdict that allowed Byju’s and the BCCI to settle a payment case.
The bankruptcy court in India had recently admitted an insolvency petition against Byju’s by the BCCI over dues amounting to approximately Rs 158.90 crore related to cricket sponsorship deals.
First Published: Aug 14 2024 | 1:24 PM IST
