Apex Court stays NCLAT verdict approving Rs 158.9 cr Byju's dues settlement with BCCI

In a major setback to an embattled Byju's, the Supreme Court on Wednesday stayed the verdict of insolvency appellate tribunal NCLAT setting aside the insolvency proceedings against the ed-tech major and approving its Rs 158.9 crore dues settlement with the Indian cricket board.

The August 2 verdict of the National Company Law Appellate Tribunal (NCLAT) had come as a huge relief for Byju's as it had effectively put its founder Byju Raveendran back in control.

The top court on Wednesday prima facie termed the NCLAT verdict as "unconscionable" and stayed its operation while issuing notices to Byju’s and others on the appeal of the ed-tech firm's US-based creditor Glas Trust Company LLC against the judgement of the insolvency appellate tribunal.

The case stemmed from Byju's default on a Rs 158.9 crore payment related to a sponsorship deal with the Board of Control for Cricket in India (BCCI).

"We are staying the judgement (of NCLAT). This is unconscionable," observed the bench which comprised Chief Justice D Y Chandrachud and Justices JB Pardiwala and Manoj Misra.