Top court turns down Byju's plea to halt insolvency proceedings

The Supreme Court on Friday paved the way for the insolvency proceedings of edtech platform Byju’s to continue, stating that since a committee of creditors (CoC) had been formed, the process outlined under the Insolvency and Bankruptcy Code (IBC) must be followed.

- BHAVINI MISHRA

Rejecting an appeal by the edtech firm’s founder Byju Raveendran against a National Company Law Appellate Tribunal (NCLAT) ruling, a two-judge bench of Justices J B Pardiwala and K V Vishwanathan said that the NCLAT was correct in assessing that an approval from the CoC was necessary for withdrawal of insolvency proceedings that were started against the platform.

The NCLAT had held that although the company had settled the ₹158 crore dues owed to the Board of Control for Cricket in India (BCCI), withdrawal of insolvency proceedings would require the approval of the CoC, a decision-making body composed primarily of financial creditors.