Supreme Court Supports NCLAT's Decision to Reinstate Byju's Creditors Committee
SC upholds NCLAT order restoring Byju's CoC, rejects Raveendran's plea
Business Standard
Image: Business Standard
The Supreme Court of India upheld the National Company Law Appellate Tribunal's (NCLAT) order reinstating the original Committee of Creditors (CoC) for Think & Learn Private Limited, Byju's parent company. The court dismissed founder Byju Raveendran's appeal, emphasizing the importance of maintaining the integrity of the insolvency process.
- 01Supreme Court upheld NCLAT's decision to restore original CoC for Byju's parent company.
- 02Glass Trust Company LLC is a significant creditor with claims exceeding ₹11,432 crore.
- 03The court dismissed allegations against the Resolution Professional's conduct.
- 04The Insolvency and Bankruptcy Code does not allow unilateral changes to CoC once formed.
- 05Byju Raveendran's appeal was rejected, affirming the tribunal's ruling.
Advertisement
In-Article Ad
On Monday, the Supreme Court of India upheld the National Company Law Appellate Tribunal's (NCLAT) order restoring the original Committee of Creditors (CoC) for Think & Learn Private Limited (TLPL), the parent company of Byju's. The court dismissed an appeal from Byju Raveendran, the company's founder and suspended director, emphasizing the need for adherence to the insolvency process. The original CoC includes Glass Trust Company LLC, which has filed claims exceeding ₹11,432 crore (approximately $1.4 billion USD). The court's decision followed a complex insolvency process initiated in July 2024 by the Board of Control for Cricket in India (BCCI). The Interim Resolution Professional (IRP) had initially formed the CoC but later attempted to reclassify creditors, leading to disputes over the authority to alter the CoC. The NCLT ruled that the IRP lacked the authority to make such changes without approval, reinstating the original CoC composition. The Supreme Court's ruling reinforces the administrative role of the IRP and the integrity of the insolvency process under the Insolvency and Bankruptcy Code.
Advertisement
In-Article Ad
The Supreme Court's decision ensures that the original creditors maintain their rights in the insolvency process, which could affect the recovery of funds for lenders and the future operations of Byju's.
Advertisement
In-Article Ad
Reader Poll
Do you think the insolvency process for Byju's was handled appropriately?
Connecting to poll...
Read the original article
Visit the source for the complete story.