The Karnataka HC disposed BYJU’S founder Byju Raveendran plea challenging NCLT’s admission of BCCI's insolvency plea
The Judge hearing the plea reasoned that NCLAT is already hearing the matter
The NCLAT is set to hear the matter tomorrow
In another setback for the embattled edtech startup BYJU’S
founder Byju Raveendran, the Karnataka High Court today disposed of his appeal to suspend National Company Tribunal (NCLT) order, which admitted insolvency resolution process earlier this month.
The matter was heard by a single bench of Justice S R Krishna Kumar. After understanding that a special bench constituted by National Company Law Appellate Tribunal (NCLAT) is already hearing the matter, the judge reportedly disposed of Raveendran’s plea. However, the court granted Raveendran a liberty to revive the petition later.
“Having regard to the undisputed fact that appeal is filed before NCLAT and it has been taken up for consideration today and kept for hearing tomorrow. Petition is disposed off with liberty to revive the petition if occasion arises,” the judge was quoted as saying by a LiveLaw report.
While Raveendran’s appeal to the Karnataka HC went without avail today, proceedings at NCLAT didn’t bear much fruit for the troubled startup. According to reports, the Board of Control for Cricket in India (BCCI) informed the tribunal’s bench today that it is in initial settlement talks with Byju Raveendran to settle the dispute.
On account of these preliminary discussions, the solicitor general Tushar Mehta, who appeared for BCCI, suggested the matter to be heard on July 31, which the tribunal agreed upon.
Meanwhile, the company’s US based lenders also added to the courtroom drama for the crushed startup. Counsel appearing for them sought to appeal the NCLT’s order disposing of their insolvency plea as BCCI’s insolvency plea had already been admitted.
The company’s tryst with NCLAT yesterday led to another setback for it when NCLAT’s justice Sharad Kumar Sharma recused himself from hearing the former’s plea challenging the order to initiate bankruptcy proceedings against the edtech firm.
At the heart of the issue is the NCLT’s order which admitted BCCI’s petition to initiate the corporate insolvency resolution process (CIRP) against BYJU’S for not paying the dues to the cricket board. BYJU’S owes INR 158.9 Cr to BCCI for sponsorship of the Indian cricket team.
Meanwhile, it disposed of the insolvency plea initiated by the company’s US based lenders, represented by GLAS Trust, on July 16. While disposing of the plea, the NCLT allowed the lenders to put forth their claims before the interim resolution professional (IRP) appointed for the company.
Shortly after the order, Raveendran challenged the tribunal’s decision in front of the Karnataka HC. In his filing, he said that the move will also result in a “total shutdown” of the edtech startup’s operations. The court dismissed the plea shortly afterwards, which led the startup to knock on the doors of the NCLAT.
