NCLAT Terminates Insolvency Proceedings; Allows Settlement Between BCCI And Byju’s
Sets aside the order of the Bengaluru bench of the National Company Law Tribunal
By: : Suraj Sinha
Update: 2024-08-02 12:15 GMT
NCLAT Terminates Insolvency Proceedings; Allows Settlement Between BCCI And Byju’s
Sets aside the order of the Bengaluru bench of the National Company Law Tribunal
The Chennai bench of the National Company Law Appellate Tribunal (NCLAT) has allowed the settlement between the Board of Cricket Control of India (BCCI) and ed-tech firm Byju’s involving Rs.158 crore repayment to the BCCI.
The bench of Rakesh Kumar Jain (Judicial Member) and Jatindranath Swain (Technical Member) invoked Rule 11, which confers inherent powers under the National Company Law Tribunal Rules, 2016 to explore a settlement.
It set aside the order of the Bengaluru bench of the National Company Law Tribunal (NCLT).
The appellate tribunal also halted the Corporate Insolvency and Resolution Process (CIRP), earlier initiated by the NCLT on the plea of the BCCI.
The settlement was allowed by the NCLAT after recording an undertaking that the repayment was being funded by Riju Raveendran (brother of Byju Raveendran). It was not from the amount that should go to financial creditors and was not in dispute.
The tribunal observed that the settlement was reached before the CoC was formed.