In a new development in Byju’s insolvency proceedings, the edtech giant’s founders reportedly alleged that former interim resolution professional (IRP) Pankaj Srivastava deliberately delayed submitting the Board of Control for Cricket in India’s BCCI settlement application.
During the hearing at the National Company Law Appellate Tribunal (NCLAT) Chennai bench, the counsel for the cofounders stated that Byju's could have emerged from insolvency by now if the submissions were made on time, according to a report published by Business Standard.
The hearing took place after Byju’s director Riju Raveendran filed an appeal against the decision of the Bengaluru bench of the NCLT to block the withdrawal of the edtech’s insolvency plea. Last January, the tribunal removed then Byju’s IRP Srivastava.
At that time, the NCLT also started disciplinary proceedings against Srivastava. It also set aside his decision to exclude Glas Trust and Aditya Birla Finance from the committee of creditors (CoC).
In his appeal, Riju alleged that Glas Trust insisted the former IRP to form a new CoC, which in turn delayed the submission of BCCI’s withdrawal application beyond the required three-day timeframe.
The CoC for Byju's parent company, Think & Learn, was initially formed on August 21 and included Aditya Birla Finance and Glas Trust, which represents Byju's US lenders. However, they were later removed when interim resolution professional Pankaj Srivastava reorganized the committee, asserting that it had been temporarily established earlier.
Byju’s-BCCI Dispute
In 2019, Byju’s secured jersey sponsorship rights for the Indian cricket team. And the contract was extended till November 2023. However, the edtech failed to make payments due to financial struggles which prompted BCCI to initiate insolvency proceedings.
Later, both the parties tried to seek the court-approved settlement, but the NCLT did not issue an order regarding the case. Following this, Byju’s escalated the matter to the NCLAT in Chennai. In June 2024, the proceedings began regarding the company’s alleged Rs 158 crore payment to BCCI.
However, the NCLAT in August 2024, dismissed the insolvency case when Byju’s cofounder Riju Raveendran raised Rs 158 crore to clear the dues. The decision temporarily restored his family’s control over Byju’s operations.
The legal challenges for Byju’s didn’t end here. Glas Trust also challenged the settlement in the Supreme Court and argued that the funds should be allocated to financial creditors instead of BCCI. This prompted the apex court to quash the NCLAT order in October 2024, and directed both the parties to return to the NCLT for fresh proceedings.
