Big Relief for Byju’s: Edtech giant Byju’s, which is facing a terrible financial crisis, has got a big relief today. The National Company Law Appellate Tribunal (NCLAT) on Friday cancelled the insolvency proceedings against Byju’s. NCLAT gave this big order while hearing the petition filed by Byju’s founder Byju Ravindran. Byju Ravindran had challenged the order to start insolvency proceedings against ‘Think and Learn’, the company that operates Byju. Actually, Byju owed Rs 158.9 crore to BCCI, which Byju had failed to repay.
BCCI had knocked the door of NCLAT for not paying the dues
BCCI had approached the National Company Law Tribunal (NCLAT) against Think and Learn for not paying the dues. This appeal of BCCI was made under the Insolvency and Bankruptcy Code (IBC). NCLT had ordered to start insolvency proceedings against Think and Learn in this case. But Byju had challenged the order of insolvency proceedings against him in the appellate tribunal. However, BCCI on Tuesday requested NCLAT to postpone the hearing in the dispute with Byju and indicated that talks were going on between the two parties for reconciliation.
Chennai bench cancels order of insolvency proceedings
In its order, the two-member Chennai bench of NCLAT said, “Taking into consideration the affidavits filed, the settlement arrived at between the parties is accepted. The impugned order passed by NCLT is set aside.”
If there is a default in paying the dues, then the bankruptcy proceedings will start again
However, the appellate tribunal has also clearly warned Byju that if it defaults in paying the dues to BCCI, then bankruptcy proceedings will be started again against the company. The appellate tribunal also rejected Byju’s allegation of round-tripping of US-based lenders and said that they could not provide any evidence for this. As per this 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 through RTGS.
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