Glas Trust, a US-based loan agency is set to challenge in the Supreme Court the National Company Law Appellate Tribunal (NCLAT) order of settlement between the Board of Control for Cricket in India (BCCI) and edtech firm Byju’s, said sources.

Glas Trust represents foreign lenders, that collectively extended more than 85 per cent of $1.2-billion term loan to Byju’s.

On August 3, Byju’s founder and CEO Byju Raveendran filed a caveat in the Supreme Court to prevent any ex-parte order being passed on requesting to be heard beforehand anticipating a challenge to the NCLAT order which halted the insolvency proceedings against the edtech firm.

‘Not in dispute’

The Appellate Tribunal had removed Byju’s parent Think and Learn from bankruptcy proceedings after accepting its settlement with creditor BCCI on August 2.

The NCLAT had observed that the settlement arrived between the parties before the Committee of Creditors (CoC) could have been constituted and that the source of the payment “is not in dispute” nor related to the foreign funds as alleged by the US-based creditors.

This meant that the company’s control would now be back with Byju Raveendran as the NCLAT suspended the order of the National Company Law Tribunal (NCLT) that admitted the company to the insolvency resolution process.

‘Round-tripping’

Riju Raveendran, Byju’s brother and shareholder in the firm, agreed to settle the dues totalling ₹158 crore from his personal funds.

Glas Trust had opposed the settlement with the BCCI before the NCLAT, alleging the money paid by Riju Raveendran was tainted, and a case of “round-tripping”.

On July 26, NCLT had ordered insolvency proceedings which the edtech firm had challenged at the NCLAT.

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