Supreme Court Stays NCLAT Verdict on Byju's Insolvency

In a significant turn of events, the Supreme Court has stayed the NCLAT verdict on Byju's insolvency proceedings. The decision impacts the Rs. 158.9 crore settlement with the Indian cricket board. This effectively strips Byju's founder, Byju Raveendran, from control of the ed-tech company until further notice.

In a significant turn of events, the Supreme Court has stayed the National Company Law Appellate Tribunal's (NCLAT) verdict concerning Byju's insolvency proceedings. The apex court's decision revolves around the Rs. 158.9 crore settlement between the ed-tech major and the Board of Control for Cricket in India (BCCI).

The August 2 verdict from NCLAT had provided a reprieve for Byju's founder, Byju Raveendran, putting him back in control. However, on Wednesday, the Supreme Court termed the NCLAT verdict as 'unconscionable' and issued notices to Byju's and others after an appeal by the firm's US-based creditor, Glas Trust Company LLC.

The Supreme Court has directed BCCI to keep the Rs. 158 crore received from Byju's in a separate escrow account until further orders. This intervention comes in the backdrop of Byju's defaulting on a payment related to its 'Team Sponsor Agreement' with BCCI.

(With inputs from agencies.)