BCCI seeks withdrawal of insolvency proceedings against Byju’s

The Board of Control for Cricket in India (BCCI) on Tuesday sought an urgent hearing for its plea to withdraw an insolvency case against edtech firm Byju’s. 

The plea comes after the Supreme Court quashed a previous settlement between the parties and directed them to approach the National Company Law Tribunal (NCLT) afresh.

The BCCI’s counsel requested that the NCLT in Bengaluru prioritize the withdrawal application, arguing that if the withdrawal is granted, it would render other pleas, such as those by US-based Glas Trust and Aditya Birla Finance (ABF) for the removal of the current resolution professional (RP), irrelevant.

The NCLT will hear the case on 18 November.

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The case file

On 23 October, the top court restored Byju’s insolvency proceedings following Glas Trust’s appeal, which challenged the National Company Law Appellate Tribunal’s (NCLAT) earlier decision to halt insolvency against the edtech's parent Think & Learn Pvt. Ltd.

The apex court also mandated that the BCCI deposit the ₹158 crore settlement amount into an escrow account overseen by the Committee of Creditors (CoC), reinforcing its 26 September order instructing the RP to maintain the status quo until a judgment was rendered.

The top court criticized the NCLAT for approving the settlement without involving the NCLT, which holds primary jurisdiction in such matters. This decision marked a turning point in Byju’s financial crisis, effectively transferring control from founder Byju Raveendran to the company’s creditors.

The Karnataka high court then, on 30 October, barred Byju’s CoC from meeting to make decisions until the NCLT ruled on the RP removal applications. The high court directed the NCLT to address Glas Trust’s application within two weeks.

Also Read: Mint Explainer: Why Byju's creditors have dragged its insolvency professional to court

The Supreme Court’s ruling stemmed from Glas Trust’s claims that settlement funds raised by Riju Raveendran, brother of Byju’s founder, were “tainted” and should have been allocated to financial creditors.

Glas Trust also highlighted ongoing Enforcement Directorate investigations into the edtech's finances, noting that Byju currently resides in Dubai, while Riju is based in London. Glas Trust and ABF also filed a lawsuit in September, alleging misconduct by Byju’s RP, Pankaj Srivastava, in the insolvency process.

In August, the top court instructed the BCCI to deposit the ₹158 crore settlement amount into escrow pending the outcome of Glas Trust’s appeal.

This followed the NCLAT's 2 August order dismissing insolvency proceedings and approving the settlement after Riju raised funds to repay the BCCI, temporarily restoring Byju Raveendran’s control.

Also Read: Byju's startup lesson: Don’t get carried away with winner-takes-all dreams

The 2019 sponsorship deal included Byju's branding on the Indian cricket team’s jerseys, which was extended until November 2023. The BCCI later attempted to encash a bank guarantee of ₹140 crore and demanded further payments.

When Byju’s failed to fulfil these obligations, the BCCI filed an insolvency petition with the NCLT, which admitted the case on 16 June.

Byju’s, once India’s top edtech unicorn, now faces financial strain, lawsuits, and scrutiny. Founded in 2011, the company is under pressure to repay a $1.2 billion loan while key investors demand asset disclosures. At its peak in 2021, Byju’s reported ₹10,000 crore in revenue and employed over 85,000.