New Delhi: The Supreme Court on Wednesday set aside the order of the National Company Law Appellate Tribunal, which stopped insolvency proceedings against embattled ed-tech firm Byju's.
A three-judge bench led by Chief Justice of India D Y Chandrachud also reversed the order of the NCLAT approving Byju’s Rs 158.9 crore dues settlement with the Board of Control for Cricket in India (BCCI). The bench, also comprising justices J B Pardiwala and Manoj Misra, directed the BCCI to deposit the settlement amount of Rs 158.9 crore with a committee of creditors.
The apex court said an amount of Rs 158 crores, maintained in a separate escrow account, will be deposited into the escrow account of the committee of creditors and shall be maintained by them. The apex court ruled that recourse to rule 11 of NCLAT rules was not warranted and exercise of inherent powers cannot be done to subjugate the legal process.