Supreme Court Questions NCLAT Verdict on Byju's Insolvency Proceedings

The Supreme Court questioned the NCLAT's decision to set aside insolvency proceedings against Byju's, hinting at a possible fresh adjudication. The court expressed concerns over the Rs 158.9 crore settlement with BCCI, which was paid from the personal assets of Byju's founder's brother, suggesting potential irregularities.

The Supreme Court on Wednesday raised questions about the National Company Law Appellate Tribunal's (NCLAT) decision to set aside insolvency proceedings against the ed-tech giant Byju's. The tribunal had earlier approved a Rs 158.9 crore settlement with the Board of Control for Cricket in India (BCCI), a move that attracted scrutiny.

Chief Justice D Y Chandrachud hinted that the matter might be sent back to NCLAT for fresh adjudication, noting that the tribunal had not adequately considered the source of the settlement money. The relief granted to Byju's had been short-lived, as the top court stayed the NCLAT's verdict and issued notices to Byju's on the appeal of its US-based creditor, Glas Trust Company LLC.

The legal battle has opened up questions about the financial conduct of Byju's and the use of personal assets to settle corporate debts. Represented by prominent lawyers, both sides continue to argue over the legitimacy and sources of the settlement funds.