The Supreme Court on Wednesday delayed the National firm Law Appellate Tribunal (NCLAT) ruling that approved a Rs 158 crore settlement between Byju's parent firm, Think and Learn, and the Board of Control for Cricket in India (BCCI).
Byju's payment to the BCCI would be maintained in a separate escrow account, according to a bench chaired by Chief Justice of India (CJI) DY Chandrachud.
Solicitor General Tushar Mehta, representing the BCCI, contended that suspending the NCLAT hearings at this time would be damaging. However, the court halted the settlement.
Byju's US-based lenders had objected to the settlement accepted by the appeal tribunal on August 2. They informed the NCLAT that the money utilized for the reimbursement was tainted because it was part of $533 million that had gone "missing."
Riju Raveendran, a Byju board member, informed the NCLAT that the funds given to the BCCI were "clean." His counsel informed the court that the funds given to the BCCI were not part of the "missing" $533 million, as claimed by the lenders. The missing funds are at the center of a dispute between US lenders and Think and Learn.
A day after the NCLAT judgment awarded Byju Raveendran control of his company, he filed a caveat with the Supreme Court, requesting to be notified if the US lenders opted to appeal the order.
The lenders had petitioned the Supreme Court, appealing the appellate tribunal's decision that permitted Byju's and the BCCI to settle a payment dispute.
The bankruptcy court in India has admitted an insolvency petition filed by the BCCI against Byju's for dues totaling around Rs 158.90 crore relating to cricket sponsorship deals.
