Edtech giant BYJU’S founder Byju Raveendran has filed a caveat before the Supreme Court against its US-based creditor Glas Trust Company LLC.
This move follows an order from the National Company Law Appellate Tribunal (NCLAT) that restored the board of the company and set aside insolvency proceedings.
The caveat was submitted to the apex court on August 3, a day after the NCLAT’s ruling, PTI reported.
Glas Trust has opposed the INR 158.9 Cr dues settlement with the Board of Control for Cricket in India (BCCI), alleging that the money paid by Byju Raveendran’s brother Riju Ravindran was tainted and a case of “round-tripping.”
Last week, the NCLAT ruled in favour of Raveendran. The appellate tribunal dissolved the insolvency resolutions process admitted by the National Company Law Tribunal (NCLT) earlier in July.
The NCLAT accepted the settlement arrived between Raveendran and the BCCI which will see the former pay INR 158 Cr owed to the latter.
In its verdict, the tribunal said that the funds Think and Learn is repaying to the BCCI are being provided by director Riju Ravindran without any external credit, as no contrary evidence was presented. It also noted that the settlement arrangement could have been reached before involving NCLAT’s Committee of Creditors (CoC).
Responding to the US-based lender’s allegations that the money in question was stolen, the counsel for Byju Raveendran and Riju Ravindran stated that the funds were secured back in 2015-16 and that INR 1,050 crore in taxes had been paid on it.
Additionally, the counsel accused Glas Trust, representing the US-based lenders, of “forum shopping” by attempting to approach a US Court in Delaware and referencing the ongoing NCLAT proceedings.
BYJU’S, once the poster child of the Indian startup ecosystem, is now grappling with multiple challenges, including mass layoffs, a severe cash crunch, delays in filing financial statements, numerous legal battles, and increasing regulatory scrutiny.
Compounding these issues is a public spat with investors amid escalating losses. The company’s net loss surged 81% year-on-year to INR 8,245.2 crore in FY22.
