NCLAT’s Chennai bench gives go-ahead for settlement between BCCI, Byju’s

Earlier this month, the Bengaluru bench of the NCLAT admitted BCCI’s application for initiation of corporate insolvency proceedings against Think & Learn Private Ltd, the parent company of Byju’s, for defaulting on the aforementioned amount.

Previously on Wednesday, when the BCCI had informed the court that a settlement had been reached, the same was opposed by the US-based Glas Trust, one of the major creditors of Byju’s. Former Attorney General Mukul Rohatgi, representing Glas Trust, had questioned the origin of the funds when Byju’s was not in a financial position to pay salaries or run their coaching centres, asserting that as per a US court, over 500 million dollars of funds had been diverted by Byju’s.

Solicitor General Tushar Mehta, appearing for the BCCI, had stated that there was no question of the BCCI accepting tainted funds, asserting that the money was not being paid by Byju Raveendran but by his brother Riju, and that there was no embargo preventing him from doing so.

Arguments along the same lines were made by both parties on the two successive days of the hearing. The NCLAT, while issuing the order, observed that no evidence was shown that the funds paid by Riju Raveendran were either from Byju’s or from the dues to be paid from their American subsidiary.

The bench stated, “The first hour of justice is the hour of compromise…the offer has been made by one of the suspended directors on behalf of the corporate debtor to bury the hatchet forever…In view of the aforesaid facts and circumstances, and in view of the undertaking given and affidavit filed, the settlement between the parties is hereby approved.”