SC Orders Escrowed 158 Crore in Byju’s matters to be Deposited with CoC, observes CIRP Violations in NCLAT Order

The Supreme Court of India set aside the National Company Law Appellate Tribunal (NCLAT) order that halted insolvency proceedings against Byju’s following a settlement with the Board of Control for Cricket in India (BCCI). The court directed that the escrowed amount of Rs. 158 crore, along with accrued interest, be deposited with the Committee of Creditors (CoC). The court found several procedural flaws in the NCLAT’s approach, including the lack of a formal application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) and the absence of a constituted CoC at the time of the settlement. The ruling emphasizes the need for adherence to the legal framework and proper procedures in insolvency cases. This decision impacts Byju’s ongoing insolvency proceedings and highlights the importance of following due process in corporate settlements.