BYJU’S Insolvency: SC Rejects BCCI, Riju Ravindran’s Pleas

BYJU’S Top Exec, Business Ally Held In Contempt Of US Court

SUMMARY

SC today dismissed appeals filed by the BCCI and BYJU’s cofounder and director Riju Ravindran challenging a ruling that stopped BBCI from taking back its insolvency plea filed against BYJU's

The case stems from an insolvency plea filed by the BCCI against BYJU’s in July 2024 over unpaid dues of INR 158.9 Cr

Though the two parties later settled the matter, the BCCI’s attempt to withdraw the case was blocked because it came after a creditors’ group had already been formed

The Supreme Court today dismissed appeals filed by the BCCI and BYJU’S cofounder and director Riju Ravindran challenging a ruling that stopped the cricket body from taking back its insolvency plea filed against the embattled edtech company without approval from creditors.

The case stems from an insolvency plea filed by the BCCI against BYJU’s in July 2024 over unpaid dues of INR 158.9 Cr. Though the two parties later settled the matter, the BCCI’s attempt to withdraw the case was blocked because it came after a creditors’ group had already been formed.

According to a Bar & Bench report, a bench of Justices JB Pardiwala and R Mahadevan said during the hearing today that they would not interfere with the earlier ruling of the National Company Law Appellate Tribunal (NCLAT), which had upheld the need for creditor approval under the insolvency rules.

Notably, the BCCI had first submitted a withdrawal form to the resolution professional in August 2024. However, the NCLT and NCLAT ruled that once a committee of creditors (CoC) is formed, 90% approval from its members is required to withdraw the case.

Ravindran had also filed a separate plea saying he wasn’t heard properly in the proceedings. The NCLAT dismissed this, noting he had attended hearings and made his arguments.

With the Supreme Court’s decision, the insolvency case against BYJU’s remains active unless the company secures creditor backing for a withdrawal, which is highly unlikely amid its bitter feud with creditors.

The development came a couple of days after Glas Trust, which represents a consortium of BYJU’S US-based lenders, dismissed BYJU’S cofounders – Byju Raveendran and Divya Gokulnath – statement that they plan to file a suit to seek monetary damages to the tune of $2.5 Bn from “parties” which have caused damage to them “personally and their businesses” as a “desperate and meritless” distraction from ongoing legal troubles.

The trust accused Raveendran of trying to divert attention from a US federal court ruling that held him in contempt. It added that the cofounder has not been able to explain what happened to BYJU’S Alpha’s missing $533 Mn.