NCLAT approves Byju's settlement with BCCI, sets aside insolvency plea against edtech firm

NCLAT approves settlement between Byju's and BCCI, revokes insolvency proceedings, with payments to be made on specific dates.

In a major relief to Byju's, the NCLAT on August 2 set aside insolvency proceedings against the troubled edtech major over a sponsorship deal and approved a ₹158 crore settlement with the Board of Control for Cricket in India.

The National Company Law Appellate Tribunal (NCLAT), however, passed the order with a caveat that any failure to make payments on the specific dates mentioned in the undertaking would automatically lead to a revival of the insolvency proceedings against Byju's.

The appellate tribunal also dismissed the allegation of round-tripping levelled by Byju's U.S.-based lenders, saying they failed to provide any evidence for the same.

The tribunal further said the money was paid by Riju Raveendran (brother of Byju Raveendran) through sales of his shares.

"In view of the undertaking given and affidavit, the settlement between the parties [is] approved and as a result appeal succeeds and impugned order [passed by the NCLT] is set aside," said a two-member Chennai bench in its order in the open court.

As per the undertaking, Riju Ravindran has made a payment of ₹50 crore on July 31 against the outstanding dues owed by Byju's to BCCI. Another ₹25 crore will be submitted on August 2, and the rest of ₹83 crore on August 9 through RTGS.

The NCLAT was hearing a petition filed by Byju's, challenging the initiation of insolvency proceedings against parent company Think & Learn.