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The National Company Law Appellate Tribunal (NCLAT) has approved the settlement arrived between Byju Raveendran and the Board of Control for Cricket in India (BCCI), of ₹158 crore, thus averting Byju’s parent Think and Learn from insolvency resolution process.
“In view of the undertaking given and affidavit filed, the settlement is approved, the appeal succeeds and the impugned order is set aside. However, with the caveat that in case there is a breach in the undertaking given, the insolvency order shall be revived,” said NCLAT.
The appellate tribunal noted that the settlement is being arrived before the Committee of Creditors (CoC) could have been constituted and considering that the source of the money for settlement is not in dispute, it did not have any reason to keep the company in insolvency process.
The control of the company will now be back with Byju Raveendran as the NCLAT suspended the order of National Company Law Tribunal (NCLT) that admitted the company to insolvency resolution process.
Welcoming the order, Byju Raveendran, founder and CEO of Byju’s, said, “Today’s NCLAT order is not just a legal victory, but a testament to the heroic efforts made by our Byju’s family in the last two years. Our founding team members have poured their hearts and souls, not to mention their entire savings, into this dream. Every Byju-ite has demonstrated extraordinary resilience, working tirelessly through unprecedented challenges. Their collective sacrifice humbles me, and I am deeply grateful to each one of them. Our trials and tribulations have only strengthened our resolve and sharpened our focus. Today, we stand not just stronger, but more united than ever. I have always believed that truth eventually prevails and hard work always wins. We have nurtured Byju’s for two decades, and we are committed to its mission of imparting high-quality education to students everywhere. You can never defeat a team that never gives up.”
On Thursday, Riju Ravindran’s counsel told NCLAT that he is using his personal funds to settle the company’s payment arrears with BCCI.
On Wednesday, the NCLAT asked the founders’ counsel to submit an undertaking disclosing the source of the funds being paid to the BCCI after the US lenders raised objections.
On July 16, the NCLT admitted Byju’s parent Think and Learn to insolvency resolution process in a plea filed by BCCI.
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