NCLAT Urges Swift Decision on Byju's Insolvency Settlement

The NCLAT has instructed the NCLT to resolve the BCCI's settlement plea regarding Byju's insolvency within a week. The directive comes amid a dispute over the inclusion of Glas Trust and Aditya Birla Finance in Byju's creditors committee as former promoter Riju Raveendran contests a prior order.

The appellate tribunal, NCLAT, has urged the NCLT to expedite its decision on the plea for settlement and withdrawal of insolvency proceedings against ed-tech firm Byju's. This directive comes following a plea filed by Riju Raveendran, contesting a previous order concerning the firm's creditors.

In the judicial directive issued by a two-member bench comprising Justice Rakesh Kumar Jain and Jatindranath Swain, the National Company Law Tribunal (NCLT) was asked to finalize the matter by the following week. However, the Chennai bench clarified that no factual observations had been made in the current decision.

The conflict roots back to a decision by the Bengaluru bench of NCLT directing disciplinary action against Byju's resolution professional and reconstituting the Committee of Creditors (CoC) contrary to an ongoing settlement plea with the BCCI. Despite a promise by Byju's promoters to settle unpaid liabilities, legal contentions over the creditors' arrangement persist.

(With inputs from agencies.)