NCLAT approves Byju's agreement with BCCI, bankruptcy proceedings canceled

The National Company Law Appellate Tribunal (NCLAT) on Friday gave a big relief to the education-technology company Byju, which is facing a financial crisis, and canceled the bankruptcy proceedings against it.

NCLAT gave this order while hearing the petition of Byju Ravindran, the founder of Byju. In this, the order to start bankruptcy proceedings against 'Think and Learn', the company operating Byju, was challenged.

The Board of Control for Cricket in India (BCCI) had approached the National Company Law Tribunal (NCLT) against Think and Learn for failing to pay an amount of Rs 158.9 crore. This appeal was made under the Insolvency and Bankruptcy Code (IBC).

The NCLT had ordered the initiation of insolvency proceedings against Think and Learn in this matter. This was challenged in the appellate tribunal. However, the BCCI on Tuesday requested the NCLAT to postpone the hearing in the dispute with Byju and indicated that talks were going on between the two parties for reconciliation.

The two-member Chennai bench of NCLAT said in its order, "Keeping in view the affidavit filed, the settlement between the parties is approved. With this, the order passed by the NCLT is canceled."

However, the appellate tribunal warned that any failure to pay would restart the insolvency proceedings against Byju. The appellate tribunal also rejected the allegation of round-tripping by Byju's US-based lenders and said they failed to provide any evidence for it.

As per the agreement, Byju Ravindran's brother Riju Ravindran paid Rs 50 crore to BCCI on July 31 and Rs 25 crore on Friday. The remaining Rs 83 crore will be deposited on August 9 via RTGS.