The Supreme Court on Thursday refused to pass an interim order to ensure that the committee of creditors (CoC) does not hold any meeting in pursuance of the insolvency proceedings against Byju’s.
A bench comprising Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Misra, however, said it will accord the final hearing in the matter on August 27.
The bench said the developments, which may take place in the meantime, can be negated if it finds there was no merit in the appeal of the US-based creditor Glas Trust Company LLC against the order of the National Company Law Appellate Tribunal (NCLAT).
At the outset, senior advocate Abhishek Singhvi, appearing for Byju’s, and solicitor general Tushar Mehta, representing the Board of Control for Cricket in India (BCCI), said the CoC has been constituted in the meantime and 98% stakes are with the US firm.
Singhvi said the CoC has been set up at 7 pm on August 21 and this is quite unfair and will make the case irreversible.
The solicitor general said the equity be balanced by deferring the meeting of the CoC and moreover, it would amount to allowing the appeal without hearing BCCI and Byju’s.
The bench, which did not pass any order and listed the plea for hearing on August 27.
The plea was mentioned earlier on August 20 by Byju’s and the BCCI and the apex court had then also refused to pass an interim order to restrain the Insolvency Resolution Professional (IRP) from constituting a committee of creditors (CoC) in the insolvency proceedings against the edtech firm.
As is known, in a setback to Byju’s, the SC had on August 14 stayed the order of NCLAT, setting aside the insolvency proceedings against the edtech firm 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 SC, 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 edtech firm’s US-based creditor Glas Trust Company LLC against the judgement of the insolvency appellate tribunal.
The case stemmed from Byju’s default on a Rs 158.9 crore payment related to a sponsorship deal with the BCCI.
The SC 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.
The NCLAT had approved the Rs 158.9 crore dues settlement with the BCCI and set aside the insolvency proceedings against Byju’s.