Supreme Court revives insolvency proceedings against Byju’s

The Supreme Court on Wednesday revived insolvency proceedings against Byju’s by putting a previous tribunal order on hold, in a victory for US lenders that say they are owed $1 billion (Rs 8,395 crore) by the education technology company.

SC’s order is a setback to company founder Byju Raveendran who earlier this month regained control of the startup that was once India’s most valuable at $22 billion (Rs 1.84 lakh crore).

The company was undergoing insolvency proceedings following a complaint by BCCI, which said it was not paid sponsorship dues. The two sides subsequently settled the dispute and an appeals tribunal halted the insolvency proceedings.

A revival of the proceedings will put control of the company back in the hands of a court-appointed insolvency administrator.

The Supreme Court on Wednesday agreed to hear an appeal by US-based Glas Trust, which represents some lenders of a Byju’s group company, putting on hold the earlier order that had quashed insolvency proceedings against Byju’s.