Digital Scoop India Official Platform of Digital Scoop India Featuring Latest & Best News #Articles #Bytes #Entertainment #DigitalScoopMagazine
Related Articles
In a significant legal victory for Byju’s and its founder Byju Raveendran, an appeals tribunal has overturned the insolvency proceedings that had been initiated against the education technology giant. The ruling comes as a major relief for Byju’s, which has faced various challenges in recent months.
The National Company Law Appellate Tribunal (NCLAT) issued its decision on Friday, quashing the insolvency process against Byju’s. This decision marks a major setback for US-based Glas Trust, which represents some of the company’s US lenders. Glas Trust had opposed the halt of the insolvency process, arguing that Byju Raveendran and his brother, Riju Ravindran, used funds owed to lenders to settle a $19 million sponsorship debt with India’s cricket board.
Byju’s, once valued at $22 billion in 2022, had faced several setbacks, including high-profile boardroom exits, the resignation of its auditor, and disputes with foreign investors over alleged mismanagement. The company has consistently denied any wrongdoing. The insolvency proceedings had been triggered after the cricket board claimed non-payment of sponsorship dues. However, Riju Ravindran, Byju’s co-founder, resolved the matter by settling the dues from personal funds and liquidating personal assets.
Following the tribunal’s ruling, Byju’s hailed the decision as a “major victory” for the company and its founders. The tribunal’s order rejected allegations that the source of the funds used to settle the cricket board’s dues was “not transparent or trustworthy.”
Despite this victory, Glas Trust has the option to appeal the tribunal’s order to the Supreme Court. The trust had argued that halting the insolvency process was unjust, but the tribunal’s decision has been a significant boost for Byju’s.
Byju’s, which operates in over 21 countries, gained prominence during the COVID-19 pandemic by providing online education courses. The company employs approximately 27,000 individuals, including 16,000 teachers.
Sources By Agencies
