BYJU’S Insolvency Case: SC To Hear Glas Trust’s Plea On Sept 17

SUMMARY

A bench led by Chief Justice D Y Chandrachud, along with Justices J B Pardiwala and Manoj Misra, agreed to expedite the hearing following requests from multiple lawyers

The plea regarding insolvency proceedings against BYJU's was brought up by senior advocate N.K. Kaul

The Supreme Court last month overturned the NCLAT’s ruling that quashed the bankruptcy proceedings against BYJU’S and approved an INR 158.9 Cr settlement

The Supreme Court today (September 11) said that it will hear on September 17 the appeal of US-based creditor Glas Trust Company LLC against a ruling by National Company Law Appellate Tribunal (NCLAT) that had stayed the insolvency proceedings against embattled edtech giant BYJU’S.

A bench led by Chief Justice D Y Chandrachud, along with Justices J B Pardiwala and Manoj Misra, agreed to expedite the hearing following requests from multiple lawyers citing new developments in the case, news agency PTI reported.

The plea regarding insolvency proceedings against BYJU’s was brought up by senior advocate N.K. Kaul, representing the ed-tech company, emphasising the need for an urgent hearing.

Solicitor General Tushar Mehta, representing the BCCI, and senior lawyer Abhishek Singhvi, also supporting BYJU’s, backed this request. Kaul noted that another related plea is also scheduled for hearing on September 17.

The Supreme Court last month overturned the NCLAT’s ruling that quashed the bankruptcy proceedings against BYJU’S and approved an INR 158.9 Cr settlement between the debt-ridden edtech firm and the Board of Control for Cricket in India (BCCI).

This follows the recent postponement by the Bengaluru bench of the NCLT regarding Glas Trust’s petition, which sought to halt further meetings of BYJU’s committee of creditors (CoC).

Glas Trust, part of a consortium of US lenders that had extended a $1.2 billion term loan to BYJU’s parent company in 2021, was reportedly removed from the creditors’ committee shortly after its first meeting on September 3.

BYJU’S, once the poster child of the Indian startup ecosystem, is now grappling with multiple challenges, including mass layoffs, a severe cash crunch, delays in filing financial statements, numerous legal battles, and increasing regulatory scrutiny.

Compounding these issues is a public spat with investors amid escalating losses. The company’s net loss surged 81% year-on-year to INR 8,245.2 crore in FY22.

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