Byju's Lender GLAS Trust Denied Restraining Order To Block BCCI Settlement
GLAS had opposed the settlement with the BCCI before the NCLAT, alleging the money paid by Riju Raveendran was tainted and a case of 'round-tripping'.
Edtech firm Byju's announced that a US court has denied Global Debt Administration And Loan Agency Trust Co.'s request for a temporary restraining order to block the BCCI settlement, on Thursday.
Earlier this month, the National Company Law Appellate Tribunal approved a Rs 158.9 crore settlement with the Board of Control for Cricket in India and dismissed the insolvency proceedings against Byju's.
Think & Learn Pvt., the owner of the Byju's brand, expressed its approval of the Delaware Bankruptcy Court's decision to reject GLAS's attempts to obstruct the company's ongoing turnaround efforts.
GLAS had also opposed the settlement with the BCCI before the NCLAT, alleging the money paid by Riju Raveendran was tainted and a case of 'round-tripping'.
Byju's said that Delaware Court ruling reinforces the validity of the settlement between the BCCI and Think & Learn, which has been approved by the National Company Law Appellate Tribunal.
"The Delaware Bankruptcy Court's decision effectively puts an end to GLAS' attempts to forum shop," Byju's legal counsel, Rishab Gupta said.
GLAS had tried and failed to sink the settlement between BCCI and one of the promoters of Byju's before the NCLAT in India, prompting the edtech to approach the Delaware court for the same relief, Gupta said.
"In its latest order, the Delaware court has upheld the principle of comity and thwarted GLAS' attempt to usurp the jurisdiction of the Indian courts," he said.
Email query sent to GLAS did not elicit any immediate reply.
(With inputs from PTI).
