In yet another setback for embattled edtech major Byju’s, the Supreme Court has stayed the National Company Law Appellate Tribunal’s (NCLAT) order, which approved the settlement between edtech firm Byju’s and the Board of Control for Cricket in India (BCCI) over ₹158 crore in unpaid dues.

The Supreme Court bench led by Chief Justice of India DY Chandrachud directed BCCI to keep the settlement amount in a separate account. The next hearing is scheduled for August 23.

This order came as a result of Glas Trust, a consortium of US-based lenders to which the edtech firm owes $1.2 billion. Opposing the edtech firm’s settlement with BCCI, Glas Trust had alleged that the payment to the cricketing authority by Riju Ravindran, brother of the company’s founder Byju Raveendran, was tainted.

However, Solicitor General Tushar Mehta, representing the BCCI, opposed the appeal against the NCLAT order. He said that because of the stay, the BCCI’s settlement with Byju’s will go.

Riju Raveendran had agreed to clear the dues from his personal funds, which were generated from the sale of Think and Learn’s shares between 2015 and 2022.

The settlement between Byju’s and BCCI was approved by NCLAT on August 2, halting bankruptcy proceedings against Byju’s parent Think and Learn and restoring control to founder Byju Raveendran.

Objecting to this, Glas Trust filed an appeal with the Supreme Court, challenging the tribunal’s verdict.

Glas Trust, representing some US lenders, argued that Byju Raveendran and his brother have voluntarily sought insolvency in the US but India can clear dues.

Financial strain

The company is yet to disburse the salary to its employees, according to sources. The ex-employees have hired legal professionals and law firms to recover their salaries and benefits.

The edtech major is grappling with issues such as boardroom exits, an auditor resignation, and a public spat with foreign investors over alleged mismanagement.

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