NCLAT Sets Aside BCCI, Riju Settlement Pleas

The National Company Law Appellate Tribunal (NCLAT) has set aside the appeals filed by BCCI and Riju Raveendran seeking withdrawal of insolvency proceedings against Byju's and considered the settlement between the debt-ridden edtech firm and the apex cricket body.

- PRESS TRUST OF INDIA

They had challenged the order passed by the Bengaluru bench of the National Company Law Tribunal, which had on February 10, 2025, directed to place their settlement offer before the new Committee of Creditors (CoC), in which US-based Glas Trust, the trustee for lenders to which Byju's owes $1.2 billion, is a member.

A two-member Chennai bench of the NCLAT comprising Justice Rakesh Kumar Jain and Jatindranath Swain upheld the directions passed by the NCLT and said the settlement proposal was filed after the formation of CoC; hence, as the provisions of section 12A of the Insolvency & Bankruptcy Code, it requires the approval of the lender's body.

Both BCCI and Riju have contended that since the application under Section 12A was filed before the constitution of the CoC, the provisions of Section 12A coupled with Regulation 30A(1)(a) shall apply and not Regulation 30A(1)(b).