NCLAT sets aside BCCI, Riju Raveendran’s plea on settlement for Byju’s

NCLAT dismisses BCCI and Riju Raveendran's appeals seeking withdrawal of insolvency proceedings against Byju's, upholding NCLT's decision.

The National Company Law Appellate Tribunal (NCLAT) has set aside the appeals filed by BCCI and Riju Raveendran seeking withdrawal of insolvency proceedings against Byju's and consider the settlement between the debt-ridden edtech firm and the apex cricket body.

They had challenged the order passed by the Bengaluru bench of the National Company Law Tribunal, which had on February 10, 2025 directed to place their settlement offer before the new Committee of Creditors (CoC), in which U.S.-based Glas Trust, the trustee for lenders to which Byju's owes $1.2 billion, is a member.

Also read: How India’s Byju’s went from startup star to facing insolvency

A two-member Chennai bench of the NCLAT comprising Justice Rakesh Kumar Jain and Jatindranath Swain upheld the directions passed by the NCLT and said the settlement proposal was filed after the formation of CoC, hence as the provisions of section 12 A of the Insolvency & Bankruptcy Code, it requires the approval of the lender's body.

Both BCCI and Riju have contended that since the application under Section 12A was filed before the constitution of the CoC, the provisions of Section 12A coupled with Regulation 30A(1)(a) shall apply and not Regulation 30A(1)(b).

Section 12 A of IBC prescribes an exit route from insolvency. It mandates that NCLT may allow the withdrawal of insolvency initiated by any financial or operational creditor under section 7,9 or section 10, based on an application made with the approval of 90 per cent voting share of the CoC.

However, Regulation 30A(1)(a) deals with the provision of filing 12 A through the interim resolution profession before formation of CoC, while 30A(1)(b) deals with provision of filing after formation of CoC.