Byju Raveendran Files Caveat In Supreme Court Amid Insolvency Dispute

Byju Raveendran, founder and chief executive officer of the edtech firm Byju's, has filed a caveat in the Supreme Court to prevent any ex-parte orders while a lender seeks to block a payment of Rs 158.9 crore to the Board of Control for Cricket in India.

The caveat was submitted on Aug. 3, following a recent order by the National Company Law Appellate Tribunal that restored the company's board and set aside insolvency proceedings.

The NCLAT had approved a settlement for the Rs 158.9 crore dues with the BCCI, which was paid by Riju Raveendran, Byju’s brother.

Glas Trust, a US-based creditor, had opposed the settlement, alleging the payment was tainted and involved 'round-tripping'.

The Appellate Tribunal’s ruling on Aug. 2 dismissed these allegations, stating that the payment was properly sourced and made through legitimate channels.

The tribunal's decision reversed a prior insolvency ruling by the National Company Law Tribunal, which had admitted a plea from the Board of Control for Cricket in India over the unpaid amount.

The settlement involves staggered payments: Rs 50 crore was paid on July 31; Rs 25 crore was due on Aug. 2, with the remaining Rs 83 crore to be settled by Aug. 9 through Real-Time Gross Settlement.

The Tribunal noted that the US creditors failed to provide evidence supporting their claims.

Byju's, which was once valued at $22 billion, has faced financial challenges following the pandemic and recent valuation reductions by BlackRock. The company’s troubles intensified after missing financial reporting deadlines and falling short of revenue projections.

In February, key investors sought to remove Raveendran as Chief Executive Officer, citing alleged mismanagement, which Raveendran has denied.

(With inputs from PTI)