New Delhi: The Supreme Court on Wednesday, August 14, put on hold an order passed by the National Company Law Appellate Tribunal (NCLAT), setting aside the insolvency proceedings against Ed-tech major Byju's and approved its Rs 158.9 crore dues settlement with the BCCI.
A three-judge bench led by Chief Justice of India DY Chandrachud and comprising justices JB Pardiwala and Manoj Misra stayed the NCLAT order, after a US-based creditor Glas Trust Company LLC moved the apex court challenging the tribunal’s verdict.
The bench directed the BCCI to keep Rs 158.9 crore received by it from Byju's in an escrow account, until further directions. Solicitor General Tushar Mehta, representing the BCCI, opposed any stay of the NCLAT decision. The bench also issued notices to Byju's on the plea, questioning validity of the August 2, 2024 order by the NCLAT.
During the hearing, senior advocate Shyam Divan, representing the US-based creditor, submitted that the NCLAT decision was not correct and it was procedurally infirm. Opposing the stay on the order, Mehta said that stay means BCCI’s settlement goes. Senior advocate A M Singhvi, representing Byju's, also contested the stay.
However, the bench said it is keen to stay the operation of the NCLAT order and the Rs 158 crore settlement amount that was paid by Byju's to BCCI should be kept in a separate account in the meantime.
"In the meantime, BCCI shall maintain Rs 158 crores realised as settlement in a separate account...List on August 23," said the bench, staying the NCLAT order. The dispute between the BCCI and Byju's related to the sponsorship contract for providing jerseys to the Indian Cricket Team.
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