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The control of the company will now be back with Byju Raveendran as the NCLAT suspended the order of National Company Law Tribunal (NCLT) that admitted the company to insolvency resolution process. read more
 "Byju's averts insolvency proceedings as NCLAT approves settlement with BCCI")
File Photo- Reuters
The National Company Law Appellate Tribunal (NCLAT) Friday accepted the settlement between Byju Raveendran and the Board of Control for Cricket in India (BCCI), thus removing Byju’s parent Think and Learn from the insolvency resolution process.
“In view of the undertaking given and affidavit filed, the settlement is approved, the appeal succeeds and the impugned order is set aside. However, with the caveat that in case there is a breach in the undertaking given, the insolvency order shall be revived,” said NCLAT.
The appellate tribunal noted that the settlement is being arrived before the Committee of Creditors (CoC) could have been constituted and considering that the source of the money (for settlement) is not in dispute, it did not have any reason to keep the company in the insolvency process.
Control of the company will now revert to Byju Raveendran, as the NCLAT suspended the National Company Law Tribunal’s order admitting the company to insolvency resolution.
The appellate tribunal dismissed an application by US-based lenders alleging the settlement was ’tainted’. Byju Raveendran agreed to pay Rs 158 crore to BCCI, which he claimed was from personal funds generated by selling Think and Learn shares between 2015 and 2022.
The Insolvency and Bankruptcy Code (IBC) stipulates that control of a company is transferred from the existing board when admitted to insolvency resolution.
Think and Learn was admitted to insolvency resolution on July 16, with Pankaj Srivastava appointed as the interim resolution professional. The NCLT had dismissed Byju’s request for arbitration, citing a default payment of Rs 158 crore to BCCI.
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English (US) ·