NCLT Directs Resolution Professional of Think & Learn to Submit BCCI’s Withdrawal Application to CoC
The National Company Law Tribunal (NCLT) has issued a directive to the resolution professional (RP) of Think & Learn to submit the withdrawal application of the Board of Control for Cricket in India (BCCI) before the edtech firm’s Committee of Creditors (CoC). This move comes after a series of legal developments involving the financial dealings between BCCI and Byju’s, a prominent edtech firm.
On November 18, the RP of Byju’s had approached the NCLT, requesting the tribunal to consider BCCI’s application to withdraw its petition. This request was prompted by a significant ruling by the Supreme Court of India on October 23. The apex court had quashed an order from the National Company Law Appellate Tribunal (NCLAT) that had previously allowed the settlement of a Rs 158-crore payment between BCCI and Byju’s.
However, the withdrawal application has faced scrutiny from Glas Trust, a representative of US entities that lent $1.2 billion to Byju’s. Glas Trust questioned the maintainability of the withdrawal application, arguing that it should have been presented to the CoC first. According to Glas Trust, the application should only be brought before the tribunal if the CoC approves it with a 90% vote. The trust also cited procedural lapses, noting that BCCI had filed the application with the RP before the CoC stage and not directly with the tribunal.
In response, the RP’s counsel argued that BCCI had initially filed the application before the CoC was formed, thereby eliminating the need for voting. This argument was pivotal in the NCLT’s decision to direct the RP to submit the application to the CoC.
Prior to this development, the NCLT had inducted Glas Trust and Aditya Birla Finance onto the CoC, overturning the reconstitution of the panel carried out by the company’s Interim Resolution Professional (IRP) on August 31. The current CoC now includes Glas Trust, Aditya Birla Finance, Incred Financial Services, and ICICI Bank as financial creditors.
The NCLT’s directive follows an order from the appellate tribunal on Friday, which directed the NCLT to pass an order in the case. This order was prompted by a petition filed by Byju’s suspended director, Riju Ravindran, over the delay in the NCLT pronouncing its order. The NCLT had reserved its order on BCCI’s application on January 8.
This ongoing legal saga highlights the complexities involved in the financial restructuring of Byju’s and underscores the critical role of regulatory bodies like the NCLT and NCLAT in navigating corporate insolvency matters.
