In this photo taken on January 10, 2019, Byju Raveendran, founder of Byju’s, the Bangalore-based educational technology start-up, poses at the company’s premises in Bangalore.
| Photo Credit: AFP
National Company Law Appellate Tribunal (NCLAT) Chennai on Wednesday told Byju Raveendran to file details of the source of funds through which he is proposing to settle the dues to Board of Control for Cricket in India (BCCI).
Byju Raveendran, the suspended director, shareholder and promoter of the edtech company had moved an appeal against NCLAT, after the National Company Law Tribunal (NCLT), Bengaluru had ordered insolvency proceedings against Byju’s parent Think & Learn Private Limited in a case filed by BCCI claiming a default of ₹158 crore.
At a hearing on July 31, NCLAT was informed that both parties were working towards settlement.
The dues have been partly paid and the remaining will be paid in two tranches on August 2 and 9. Byju Raveendran’s brother Riju Raveendran would make the payment, the parties added.
However, certain lenders of Think and Learn objected to the settlement proposal alleging that the funds were tainted money, citing a judgement from Delaware Court in a case relating to Byju’s U.S. entity Byju’s Alpha.
They also alleged that settlement to the operational creditor (BCCI in this case) is a preferential transaction violating the provisions of the Insolvency and Bankruptcy Code.
NCLAT Judicial member Justice Rakesh Kumar Jain told Byju Raveendran to file an undertaking about the source of funds and posted the case for further hearing on Thursday.
Pankaj Srivastava, interim resolution professional appointed to oversee the insolvency process, informed NCLAT that no committee of creditors would be formed for now.
