BYJU’s insolvency case: Supreme Court to expedite hearing on Glas Trust's appeal against NCLAT judgment

The Supreme Court on September 6 agreed to list for an early hearing the appeal of US-based creditor Glas Trust Company LLC against a judgment of the NCLAT, which had stayed insolvency proceedings against ed-tech firm BYJU’s and approved its Rs 158.9 crore dues settlement with the BCCI.

A bench comprising Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Misra was urged by senior advocate NK Kaul, appearing for the ed-tech major, that the case needed to be heard at the earliest.

Kaul said, “The only funding was done by the promoters and today no one has brought any external borrowing. We have to show today how malafide the petition (of US firm) is.”

“I will get it listed as early as possible,” the CJI, who was indisposed and in quarantine for the last few days, said.

Senior advocate Kapil Sibal, appearing for the US-based creditor, said it also wanted an early hearing.The issue at hand involves the removal of Glas Trust from the CoC by IRP Pankaj Srivastava. Glas Trust has challenged its removal and is also seeking the removal of Srivastava as the IRP.

Earlier, the Bengaluru bench of the National Company Law Tribunal (NCLT) had said that it cannot stop the committee of creditors (CoC) proceedings as the Supreme Court has allowed its constitution on August 21.

The matter pertains between Glas Trust Co, which represents a group of the troubled edtech firm Byju’s US lenders, and the Insolvency Resolution Professional (IRP) for the parent company, Think & Learn Pvt Ltd. According to the bench, it cannot stop the committee of creditors (CoC) proceedings as the Supreme Court allowed its constitution on August 21.

The NCLT stated that the apex court has given the go-ahead for the formation and constitution of the Committee of Creditors (CoC) and for conducting the meeting, making it clear that the process cannot be halted. The bench mentioned that lenders could file a separate application if they wish to pursue further actions.

In a major setback to Byju's, the top court had on August 14 stayed the verdict of NCLAT, setting aside the insolvency proceedings against the ed-tech major and approving its Rs 158.9 crore dues settlement with the Indian cricket board.

The August 2 verdict of the NCLAT had come as a huge relief for Byju's as it had effectively put its founder Byju Raveendran back in control.

The top court, however, had prima facie termed the NCLAT verdict as “unconscionable” and stayed its operation while issuing notices to Byju's and others on the appeal of the ed-tech firm’s US-based creditor against the judgment of the insolvency appellate tribunal.

The top court had directed the BCCI to keep a sum of Rs 158 crore it had received from Byju’s after a settlement in a separate escrow account till further orders.

On July 16, the Bengaluru bench of the National Company Law Tribunal (NCLT) had admitted ‘Think and Learn’, Byju’s parent company, to the insolvency resolution process on a plea filed by the BCCI over default in payment of outstanding dues of almost Rs 158.9 crore.