BCCI And Riju Ravindran Challenge NCLT’s Insolvency Withdrawal Application Order
The tribunal had directed the IRP of Think & Learn to submit it before the CoC;
BCCI And Riju Ravindran Challenge NCLT’s Insolvency Withdrawal Application Order
The tribunal had directed the IRP of Think & Learn to submit it before the CoC
The Board of Control for Cricket in India (BCCI) along with ed-tech firm Byju's suspended director Riju Ravindran, have challenged the order of the National Company Law Tribunal (NCLT).
The order directed the insolvency resolution professional (IRP) of Think & Learn, Byju's parent company, to submit the BCCI's insolvency withdrawal application before the Committee of Creditors (CoC).
Representing the cricket board, senior advocate CK Nandakumar stated that the Rs.158-crore settlement with Byju’s happened before the CoC was formed. Thus, the tribunal should have taken a decision rather than advising the creditors to consider.
On 10 February, the tribunal directed the CoC to decide on the application. This was after the reconstitution of the CoC was set aside.
The CoC now constitutes Glas Trust, Aditya Birla Finance, Incred Financial Services and ICICI Bank as financial creditors.
Nandakumar told the NCLT, “Due to multiple orders from different courts and tribunals, the settlement was reached when there was no controversy. It has now taken a completely different ramification. Glas Trust’s rights were protected at their request.”
He reiterated that the withdrawal application was submitted to the interim RP, Pankaj Srivastava before the CoC was formed. However, he filed it after it was constituted.
Representing Ravindran, senior advocate Arun Kathpalia argued that it was the IRP’s responsibility, but he faulted in submitting the application. He expressed concern that the suspended directors were not given the opportunity to be heard, and the tribunal’s orders would affect them.
Meanwhile, Glas Trust, representing the US lenders of Think & Learn, submitted that by the time the application was presented to the NCLT, the CoC was formed. BCCI deliberately did not submit the application.
However, Nandakumar explained, "I had written in the letter that it is subject to the outcome of the petition and the appeal being allowed, and that please don't file it when the Supreme Court is seized of the matter.”
Representing Glas Trust, senior advocate Kapil Sibal also opposed Byju's promoter’s impleadment application. He stated, "CoC stands constituted. All decisions will be taken by the CoC. The promoters have no role at this stage.”
Byju's insolvency proceedings began last year after the BCCI moved the NCLT to recover the Rs.158 crore owed by the company for a sponsorship deal.
In August, the National Company Law Appellate Tribunal (NCLAT) approved the settlement between the parties after Ravindran agreed to pay the cricket board. However, in October, the apex court quashed an earlier NCLAT ruling approving the settlement.
