SC denies Byju’s plea to hold formation of creditors’ committee

The Supreme Court has declined a plea by Byju’s to prevent the resolution professional of the firm from constituting a committee of creditors (CoC) till the top court decides on the case.

The apex court denied the interim relief sought by Byju’s; it has agreed to hear the case in detail on August 22.

The key responsibility of the resolution professional was to gather comprehensive information on all the debts owed by Byju’s to its stakeholders and to form a CoC. The company’s management would then, in principle, be transferred to the creditors.

This comes when the SC revived the insolvency petition against Byju’s, suspending the National Company Law Appellate Tribunal’s (NCLAT) order that had put aside the bankruptcy proceedings against the company.

It also directed BCCI to deposit a settlement amount of ₹158 crore from Byju’s in a separate escrow account until the resolution of an appeal by a US lender to the edtech company.

• Also read: Supreme Court stays NCLAT order approving Byju’s settlement with BCCI

Raveendran’s address

Byju Raveendran, founder and CEO, in an e-mail to employees promising swift resolution despite ongoing legal challenges. The firm is yet to pay the July salaries.

He said that stay by the SC on the bankruptcy case has hindered the company’s ability to access funds, resulting in delayed payments.

“I understand how crucial this is, and I want to explain the situation clearly,” Raveendran wrote, pointing out that the company’s financial control remains frozen due to a legal dispute with foreign lenders. “This isn’t just a promise—it’s a commitment. Your salaries will be paid promptly, even if that means raising more personal debt,” he said in the e-mail, seen by businessline.

He also vehemently denied allegations that he is avoiding legal responsibilities. “I am not a fugitive,” he said, adding that his travels are for business and family reasons, including time spent in the US due to his father’s health condition. “I have always been transparent about my whereabouts and activities,” he said.

“There has never been an attempt to avoid legal or financial obligations.” He further stated that the founders have infused over ₹7,500 crore into the company to sustain operations, with Riju Raveendran, Byju’s brother, personally contributing ₹1,600 crore for salaries over the past two years.

• Also read: NCLT tells Byju’s to pay salary dues to employees or face audit

“My brother Riju has taken full financial responsibility for settling ₹158 crore with the BCCI,” he said.

This comes at a time when the US-based lenders Glas Trust approached the SC against the NCLAT order.