US Court Rejects GLAS Trust Company's Bid Against BCCI-Byju's Settlement

A US court denied GLAS Trust Company's request for a temporary restraining order to block the settlement between the BCCI and edtech firm Byju's. This follows the approval of a Rs 158.9 crore settlement by the NCLAT. Byju's welcomed the decision, which supports their ongoing turnaround efforts.

A US court has rejected GLAS Trust Company's attempt to secure a temporary restraining order to block the BCCI settlement, Byju's announced on Thursday.

Earlier this month, the National Company Law Appellate Tribunal (NCLAT) had sanctioned a Rs 158.9 crore settlement with BCCI, thereby halting insolvency proceedings against Byju's.

Think and Learn, the owner of the Byju's brand, expressed approval of the Delaware Bankruptcy Court's ruling against GLAS, which claimed to represent a foreign lender consortium. The court's decision supports the company’s efforts to turn around its fortunes.

GLAS had previously contested the NCLAT-approved settlement, alleging the funds paid by Byju's promoter Riju Raveendran were tainted and part of a ‘round-tripping’ scheme.

This Delaware Court ruling solidifies the validity of the settlement between the Board of Control for Cricket in India (BCCI) and Think & Learn.

The Delaware Bankruptcy Court’s decision effectively ends GLAS' attempts to block the settlement through various legal forums. Having failed in India, GLAS had approached the Delaware court for relief.

The latest court order asserts the principle of comity and has rejected GLAS' efforts to override the jurisdiction of Indian courts, according to Byju’s legal counsel, Rishab Gupta.

An email query sent to GLAS did not receive an immediate response.