SC dismisses Byju Raveendran’s plea in BCCI settlement dispute

The Supreme Court on Friday dismissed a petition filed by Byju Raveendran — the promoter of Think and Learn Private Limited that operates ed-Tech firm Byju — against an NCLAT order, requiring the settlement of the BCCI's claim to be placed before the Committee of Creditors (CoC).

A Bench of Justice JB Pardiwala and Justice KV Viswanathan dismissed Byju's appeal against the April 17 order of the Chennai Bench of the National Company Law Appellate Tribunal (NCLAT) and asked senior counsel Navin Pahwa, representing Raveendran, to proceed further.

In its April 17 order, the NCLAT said the approval of the Committee of Creditors was necessary for the application filed by the BCCI to withdraw the insolvency proceedings against Byju's. The Bench said in July, it dismissed the appeals filed by the BCCI and Riju Raveendran, the brother Byju Raveendran and co-founder of Byju, against the same NCLAT order.

Justice Pardiwala asked Pahwa what was wrong with the view taken by the NCLAT that the top court's judgment would apply, in which it was stated that the CoC was constituted during the pendency of the proceedings and had allowed the parties to seek remedies relating to the withdrawal and settlement of claims "in compliance with the legal framework governing the withdrawal of the CIRP". Pahwa said the earlier plea was filed at the pre-CoC stage and the panel was formed during the pendency of that matter.

The Bench, however, said, “The moment we accept your argument, we frustrate the entire process.”