Byju Raveendran Regains Control of Byju’s After NCLAT Approves Settlement with BCCI
News Mania Desk/Agnibeena Ghosh/3rd August 2024
Byju Raveendran has successfully regained control of Byju’s, following a pivotal decision by the National Company Law Appellate Tribunal (NCLAT) on August 2, 2024. The tribunal’s ruling effectively removes Byju’s parent company, Think and Learn, from the insolvency resolution process, marking a significant turn in the ongoing legal and financial battle.
The NCLAT’s decision came after it accepted a settlement agreement between Byju Raveendran and the Board of Control for Cricket in India (BCCI). This settlement emerged before the formation of the Committee of Creditors (CoC), which typically plays a crucial role in insolvency proceedings. The appellate tribunal noted that the source of the funds used for the settlement was undisputed, which influenced its decision to halt the insolvency process.
The NCLAT emphasized that the settlement was approved based on the affidavit and undertaking provided by the involved parties. The tribunal also issued a caveat, stating that if there were any breaches of the agreed terms, the insolvency order would be reinstated. This condition underscores the tribunal’s cautious approach while restoring control to Raveendran.
As a result of the NCLAT’s order, the previous insolvency proceedings initiated by the National Company Law Tribunal (NCLT) have been suspended. The NCLT had earlier admitted Think and Learn into insolvency, a move that had significant implications for Byju’s operations and leadership. With the appellate tribunal’s decision, Byju Raveendran can now resume his role at the helm of the company, steering it through its ongoing challenges and strategic objectives.
The settlement with BCCI represents a key development in Byju’s legal landscape, addressing critical financial disputes and paving the way for Raveendran’s return to leadership. The resolution of this matter highlights the complexities involved in corporate insolvency processes and the importance of timely and effective settlements in resolving such issues.
Raveendran’s reinstatement as the controlling figure of Byju’s is expected to bring stability to the company, which has been navigating through turbulent financial waters. The decision also reflects the NCLAT’s commitment to ensuring fair and practical outcomes in insolvency cases, balancing legal procedures with the practical realities of business operations.
With this development, Byju’s can now focus on its core educational technology business and strategic growth plans without the immediate constraints of insolvency proceedings. The outcome is a significant victory for Raveendran and Byju’s, providing a clear path forward as they work to address past challenges and capitalize on future opportunities in the competitive edtech industry.
