BCCI is likely to move the NCLT to seek withdrawal of insolvency proceedings it had initiated against edtech player Byju’s, CNBC-TV18 reports, citing sources.
The development comes after the Supreme Court last month quashed National Company Law Appellate Tribunal’s (NCLAT) order allowing a settlement between the cricket board and the edtech company.
The BCCI’s counsel requested that the NCLT in Bengaluru prioritize the withdrawal application, arguing that if the withdrawal is granted, it would render other pleas, such as those by US-based Glas Trust and Aditya Birla Finance (ABF) for the removal of the current resolution professional (RP), irrelevant.
The NCLT will hear the case on 18 November.
The Supreme Court on October 23 had set aside the NCLAT’s order approving a Rs 158 crore settlement between Byju’s and the Board of Control for Cricket in India (BCCI). NCLAT had closed the insolvency proceedings against Byju’s after it settled with BCCI, which the court said violated procedures under the Insolvency and Bankruptcy Code (IBC). The Supreme Court had said that once a Corporate Insolvency Resolution Process (CIRP) is admitted, the IRP takes control of the debtor’s affairs, and any withdrawal of the application must go through the IRP.
The US lenders of Byju’s have sought the removal of the IRP to Byju’s, and are also demanding that the Committee of Creditors be constituted afresh, putting Byju’s under further pressure.
