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The Supreme Court of India has issued a directive to the interim resolution professional (IRP) of Byju's, instructing them to maintain the status quo and refrain from holding any meetings of the Committee of Creditors (CoC) until a verdict is reached on the appeal filed by US-based lender Glas Trust. This directive stems from a challenge by Glas Trust against the National Company Law Appellate Tribunal's (NCLAT) decision to halt insolvency proceedings against Think and Learn Pvt Ltd, the parent company of Byju's. The court's decision underscores the ongoing scrutiny surrounding Byju's financial situation and the legal battles it faces.
The Supreme Court's reservations concerning the NCLAT order are evident in its questioning of the reasoning behind the order, describing it as lacking in thorough consideration. Specifically, the court expressed its confusion regarding Byju's decision to settle with only the Board of Control for Cricket in India (BCCI) when there are numerous other creditors, particularly considering the significant debt owed. The court's skepticism regarding the source of funds for this settlement, demanding clarity on whether it originated from Byju's assets, further emphasizes the court's desire for a comprehensive and transparent resolution.
This situation highlights the complexity of Byju's financial troubles. The US-based lenders have raised concerns about the transparency and legality of the funds used for repayment, pointing to a missing $533 million, further complicating the situation. The Supreme Court's decision to send the matter back to the NCLAT for fresh consideration, demanding a more thorough analysis and transparency regarding the source of funds, signifies the court's commitment to ensuring fairness and accountability in the resolution process.
Source: SC tells Byju's RP not to hold meeting of lenders until verdict is out