New Delhi: In a major setback for Byju’s, the Supreme Court has overturned the settlement between the ed-tech company and the Board of Control for Cricket in India (BCCI), effectively reopening insolvency proceedings. The court directed that the ₹158 crore paid by Byju’s to the BCCI as part of the settlement be held in an escrow account until further review. The decision allows Byju’s creditors to approach the Committee of Creditors (CoC) for remedies under the Insolvency and Bankruptcy Code (IBC).
The case escalated when Glas Trust, a US-based creditor, raised objections, alleging that Byju’s preferentially settled with BCCI while ignoring other creditors. The Supreme Court supported Glas Trust’s claims, with Chief Justice DY Chandrachud criticizing the ed-tech company for settling a single debt while carrying ₹15,000 crore of liabilities. “Can one creditor (BCCI) walk away while the company is in such massive debt?” Chandrachud questioned, highlighting the need for a more equitable approach to creditor payments.
Byju’s legal team, led by Abhishek Manu Singhvi, defended the settlement, stating that the funds came from personal resources of Riju Raveendran, co-founder and brother of Byju Raveendran. However, Glas Trust argued that the money used in the settlement was “tainted” and could involve round-tripping.
The Supreme Court’s ruling has reignited concerns about Byju’s financial health, as the company grapples with over $1.2 billion in debt. This decision ensures that the insolvency process continues under strict oversight, leaving it up to the CoC to address all creditors’ claims, including those of BCCI.
However, even within more progressive parties like the CDP, women only make up around 30% of candidates, far below the ideal threshold of equal representation. Meanwhile, Prime Minister Fumio Kishida has acknowledged the gender gap issue but has stopped short of endorsing quotas, preferring gradual change through voluntary reforms.
