Byju's Insolvency Saga: NCLAT Upholds CoC Involvement

The National Company Law Appellate Tribunal (NCLAT) dismissed appeals by BCCI and Riju Raveendran, maintaining that Byju's insolvency proceedings require Committee of Creditors (CoC) approval. The decision follows claims of procedural missteps in insolvency withdrawal measures by the edtech firm under Section 12A of the Insolvency & Bankruptcy Code.

The National Company Law Appellate Tribunal (NCLAT) has dismissed appeals filed by the Board of Control for Cricket in India (BCCI) and Riju Raveendran, concerning the withdrawal of insolvency proceedings against edtech giant Byju's.

The appeals challenged a decision by the National Company Law Tribunal's Bengaluru bench, which required a settlement proposal to be placed before a newly formed Committee of Creditors (CoC), where Glas Trust is a member. Glas Trust, as a financial creditor, had taken Byju's to insolvency over a $1.2 billion debt.

According to NCLAT's ruling, the settlement proposal was indeed submitted post-CoC formation, hence under Section 12A of the Insolvency & Bankruptcy Code, approval from the CoC is mandatory. Despite arguments by BCCI and Raveendran regarding the timing of their application, NCLAT maintained its stance due to procedural guidelines.

(With inputs from agencies.)