In a crucial development, the Supreme Court of India has admitted appeals filed by the promoters of Byju’s, challenging the ongoing insolvency proceedings against the edtech giant. The apex court has scheduled the next hearing for July 21, 2025, where it will consider interim relief sought by the petitioners.
Background of the Case
The insolvency proceedings stem from a petition filed by the Board of Control for Cricket in India (BCCI) over unpaid dues of ₹158 crore from Byju’s, which was previously a Team India sponsor. The National Company Law Appellate Tribunal (NCLAT) Chennai Bench had earlier denied withdrawal of the insolvency process, despite a settlement agreement between Byju’s and BCCI before the formation of the Committee of Creditors (CoC).
Supreme Court’s Observations
Senior Counsel K.K. Venugopal, representing Byju’s promoters, argued that the settlement was fully executed and communicated to the Interim Resolution Professional (IRP) before the CoC was constituted. The promoters are seeking withdrawal of the Corporate Insolvency Resolution Process (CIRP) based on this pre-CoC agreement.
Additionally, Senior Counsel Guru Krishna Kumar highlighted concerns over Byju’s US assets, alleging that the Resolution Professional withdrew legal proceedings in the US, leading to potential asset disposals.
Legal & Financial Implications
Byju’s, once valued at $22 billion, has faced severe financial distress, regulatory scrutiny, and disputes with US lenders demanding $1 billion in unpaid dues. The Supreme Court’s decision on July 21 could determine whether Byju’s can exit insolvency proceedings based on the validity of the BCCI settlement.
Industry & Market Reactions
The case has drawn significant attention from investors and stakeholders in India’s startup ecosystem. Analysts believe that a favorable ruling for Byju’s could restore confidence in the company’s restructuring efforts, while an adverse decision may further complicate its financial recovery.
