NCLAT Chennai accepts Byju's settlement with BCCI

The National Company Law Appellate Tribunal (NCLAT), Chennai on Friday, August 2 allowed the appeal filed by Byju Raveendran, founder of Byju’s, against an order initiating insolvency resolution proceedings against the edtech firm.

A coram of judicial member Rakesh Kumar Jain and technical member Jatindranath Swain passed the order in view of a settlement between Byju's and the Board of Control for Cricket in India (BCCI) for the repayment of around ₹158 crores owed to the BCCI in connection with cricket jersey sponsorship deals.

Pertinently, it was on BCCI's plea that the National Company Law Tribunal (NCLT) Bengaluru initiated the corporate insolvency resolution process (now halted) against Byju's in June.

The NCLAT today accepted the settlement between Byju's and BCCI (operational creditor) after recording an undertaking that the repayment is being personally funded by Riju Raveendran (brother by Byju Raveendran) and not taken from money that should go to financial creditors.