NCLT Directs Byju’s RP To Submit BCCI’s Withdrawal Application Before CoC
Earlier, the Supreme Court had quashed the order of the NCLAT allowing a settlement between the two entities;
NCLT Directs Byju’s RP To Submit BCCI’s Withdrawal Application Before CoC
Earlier, the Supreme Court had quashed the order of the NCLAT allowing a settlement between the two entities
The National Company Law Tribunal (NCLT) has directed the resolution professional (RP) of Think & Learn to submit the withdrawal application of the Board of Control for Cricket in India (BCCI) before Byju's Committee of Creditors (CoC).
On 18 November 2024, Byju's RP requested the NCLT to consider BCCI’s application to withdraw its petition. It came after the 23 October ruling of the Supreme Court, quashing the order of the National Company Law Appellate Tribunal (NCLAT) that allowed the settlement of a Rs.158-crore payment between the BCCI and Byju's.
However, Glas Trust, representing a group of US entities that lent $1.2 billion to Byju's, had questioned the maintainability of the withdrawal application.
Since the application was filed post the formation of the CoC, Glas Trust argued that it should have been first presented before the CoC. It could go to the tribunal only after 20 percent vote clearance. It cited procedural lapses for seeking rejection of the application.
However, the RP's counsel submitted that since the BCCI filed the application before the CoC was formed, voting was not required.
Earlier, the NCLT had inducted Glas Trust and Aditya Birla Finance onto the CoC, by setting aside the reconstitution of the panel carried out on 31 August by the company's Insolvency Resolution Professional (IRP).
Presently, the CoC constitutes Glas Trust, Aditya Birla, Incred Financial Services and ICICI Bank as financial creditors.
Recently, the appellate tribunal directed the NCLT to pass an order on the matter after Byju's suspended director, Riju Ravindran, brother of Byju Ravindran, petitioned over the delay in the tribunal’s order.
