In a major setback to an embattled Byju's, the Supreme Court on Wednesday stayed the verdict of insolvency appellate tribunal NCLAT setting aside the insolvency proceedings against the ed-tech major and approving its Rs 158.9 crore dues settlement with the Indian cricket board.
The August 2 verdict of the National Company Law Appellate Tribunal (NCLAT) had come as a huge relief for Byju's as it had effectively put its founder Byju Raveendran back in control.
The top court on Wednesday prima facie termed the NCLAT verdict as "unconscionable" and stayed its operation while issuing notices to Byju's and others on the appeal of the ed-tech firm's US-based creditor Glas Trust Company LLC against the judgement of the insolvency appellate tribunal. The case stemmed from Byju's default on a Rs 158.9 crore payment related to a sponsorship deal with the Board of Control for Cricket in India (BCCI).
"We are staying the judgement (of NCLAT). This is unconscionable," observed the bench which comprised Chief Justice D Y Chandrachud and Justices JB Pardiwala and Manoj Misra.
The top court directed the BCCI to keep a sum of Rs 158 crore it had received from Byju's after a settlement in a separate escrow account till further orders. "Issue notice. Pending further orders there shall be a stay of the impugned order of August 2 of NCLAT.
In the meantime, BCCI shall maintain the amount of Rs 158 Crores ,which shall be realised in pursuance of a settlement, in a separate escrow account until further orders," the bench said.
The bench did not agree to the submission of Solicitor General Tushar Mehta, appearing for the BCCI, that the NCLAT order be not stayed without hearing the cricket board.