In a significant development concerning Byju’s insolvency proceedings, the National Company Law Appellate Tribunal (NCLAT) has dismissed an appeal by Riju Raveendran, a suspended director of Byju’s, seeking to exclude a ₹158 crore settlement with the Board of Control for Cricket in India (BCCI) from the scrutiny of the Committee of Creditors (CoC).

The dispute originated when Byju’s failed to fulfill its financial obligations under a sponsorship agreement with BCCI, leading the cricket board to initiate insolvency proceedings against the edtech company. Subsequently, a settlement of ₹158 crore was negotiated between Byju’s and BCCI. Riju Raveendran contended that this settlement was finalized prior to the formation of the CoC and, therefore, should not be subject to its review.

The CoC, comprising creditors such as Glas Trust Company and Aditya Birla Finance, opposed the exclusion of the settlement from their purview. They argued that the funds involved in the settlement were “tainted” and insisted on their right to scrutinize the transaction to ensure transparency and fairness in the insolvency resolution process.

On February 20, 2025, the NCLAT ruled against Raveendran’s plea, affirming that the CoC has the authority to review all financial transactions, including the ₹158 crore settlement with BCCI, irrespective of when they were finalized. The tribunal emphasized the importance of maintaining the integrity of the insolvency process and ensuring that all stakeholders’ interests are adequately protected.

This ruling implies that the settlement with BCCI will undergo scrutiny by the CoC, potentially influencing Byju’s efforts to resolve its insolvency issues. The company’s management will need to collaborate closely with the CoC to address any concerns raised during the review process and work towards a resolution that satisfies all parties involved.

The NCLAT has scheduled the next hearing for March 3, 2025, where further deliberations on the matter are expected. Byju’s will need to prepare comprehensive justifications for the settlement and demonstrate its alignment with the broader objectives of the insolvency resolution process.

Key Highlights:

• NCLAT has dismissed Byju’s appeal to exclude a ₹158 crore settlement with BCCI from the CoC’s review.
• Creditors argue the funds are “tainted” and seek transparency in the transaction.
• The decision emphasizes the CoC’s authority over all financial dealings in the insolvency process.
• Further hearings are scheduled for March 3, 2025.