Supreme Court agrees to list plea related to insolvency proceedings against ed-tech firm Byju's

Supreme Court to hear appeal for early settlement of Byju's insolvency case against U.S. creditor.

The Supreme Court on Friday (September 6, 2024) agreed to list for an early hearing the appeal of U.S.-based creditor Glas Trust Company LLC against a judgment of the NCLAT, which had stayed insolvency proceedings against ed-tech firm BYJU’s and approving its ₹158.9 crore dues settlement with the BCCI.

A Bench comprising Chief Justice D.Y. Chandrachud and Justices J.B. Pardiwala and Manoj Misra was urged by senior advocate N.K. Kaul, appearing for the ed-tech major, that the case needed to be heard at the earliest.

Mr. Kaul said, “The only funding was done by the promoters and today no one has brought any external borrowing. We have to show today how malafide the petition (of U.S. firm) is.”

“I will get it listed as early as possible,” the CJI, who was indisposed and in quarantine for the last few days, said.

Senior advocate Kapil Sibal, appearing for the U.S.-based creditor, said it also wanted an early hearing.

Earlier on August 22, the Bench had refused to pass an interim order to ensure that the committee of creditors (CoC) does not hold any meeting in pursuance of the insolvency proceedings against the embattled ed-tech firm. It had listed the plea for a final hearing on August 27.

The Bench had said the developments, which may take place in the meantime, can be negated if it finds there was no merit in the appeal of the U.S.-based creditor against the judgment of the appellate insolvency tribunal NCLAT.