Byju's Secures Major Relief as NCLAT Sets Aside Insolvency Proceedings

The National Company Law Appellate Tribunal (NCLAT) set aside insolvency proceedings against Byju's, approving a Rs 158 crore settlement with the Board of Control for Cricket in India (BCCI). The tribunal warned that failure to adhere to payment dates would revive the proceedings. Allegations of financial misconduct were dismissed.

In a major relief for Byju's, the National Company Law Appellate Tribunal (NCLAT) has set aside insolvency proceedings against the struggling edtech giant. This comes after the company reached a Rs 158 crore settlement with the Board of Control for Cricket in India (BCCI) over a sponsorship deal.

The NCLAT, however, specified that any default in payments on the stipulated dates would automatically trigger a revival of the insolvency proceedings. Byju's US-based lenders' allegations of round-tripping were dismissed due to lack of evidence.

This ruling follows the undertaking where Riju Raveendran, brother of Byju Raveendran, made part-payments against the dues. The NCLAT was hearing a petition challenging the initiation of insolvency proceedings by the BCCI, initially ordered by the Bengaluru bench of the National Company Law Tribunal (NCLT).

(With inputs from agencies.)