BCCI tells NCLAT it has arrived at settlement with Byju's

The Board of Control for Cricket in India (BCCI) on Wednesday informed the National Company Law Appellate Tribunal (NCLAT) that it has arrived at a settlement with Byju's on the repayment of over ₹158 crores due to it under cricket jersey sponsorship deals. .The NCLAT Chennai Bench was informed today that Riju Raveendran, the brother of Byju's founder, Byju Raveendran has paid ₹50 crores yesterday. An additional amount of ₹25 crores will be paid by Friday and the remaining ₹83 crore due will be paid by August 9, the NCLAT was told. The settlement was, however, opposed by a US-based financial creditor who told the appellate tribunal that this repayment is tainted and being funded with stolen money. Representing the creditor, Senior Advocate Mukul Rohatgi added that both Byju and Riju conspired to siphon off over ₹500 crores, as per the findings of a US court. Among other submissions, he argued that Byju Raveendran has now absconded to Dubai, amid his financial woes. "And now the debtor is offering to pay off the dues of 158 crores. It is our money that has been withdrawn by these fellows," Rohatgi said. "Your assumption is that this money part of your 533 million?" the NCLAT asked Rohatgi."Yes. Where is this money coming from? Have they taken it out of an official bank account? Mr Byju is a fugitive from justice," Rohatgi argued. Representing the BCCI, Solicitor General Tushar Mehta weighed in by assuring that the cricket control authority would never accept any tainted money."BCCI will never condone any money that has come surreptitiously," Mehta said."They (creditors) have argued before me that don't believe Riju Raveendran. Then they showed me the US order of prohibitory injunction on the use of that 533 million," the NCLAT pointed out.Mehta added that the creditor's concerns were based on assumptions. "That Mr. Byju must be a very bad person and the money might be stolen or swallowed' - these are all assumptions," he said. The financial creditors, however, urged the NCLAT to direct Byju's to file an undertaking that the money being paid to BCCI is not Byju Raveendran's. Byju Raveendran's counsel replied that some assurance should be given to ensure that the insolvency process against Byju's does not come in the way of the proposed settlement. "It shouldn't be that we give an undertaking and tomorrow the CoC is formed. We haven't got any assurance," Byju Raveendran's counsel said. Meanwhile, the interim resolution professional (IRP) appointed to oversee the insolvency proceedings initiated against Byju's reiterated concerns that Byju's is not cooperating with the process."It has been 16 days. They have not given us any access. The coaching centres are shut. I managed to find two laptops but all data had been deleted," the IRP said.The NCLAT asked IRP whether the CoC's constitution can be put on hold.The IRP then assured that no CoC would be formed till tomorrow. The NCLAT took this submission on record and adjourned the hearing till tomorrow (August 1). The appellate tribunal also asked Byju's to file an affidavit or an undertaking to clarify that money due to financial creditors will not be used to pay operational creditors (such as the BCCI)..On July 16, the NCLT, Bengaluru admitted an insolvency plea filed by the BCCI against Think and Learn Private Limited, which is the parent company of ed-tech firm Byju's. The order was passed on an insolvency plea filed by the BCCI over unpaid dues related to sponsorship rights worth ₹158 crores.On July 23, Raveendran had moved the NCLAT Chennai challenging the order of the NCLT Bengaluru.Two days later, Raveendran filed a fresh writ petition before the Karnataka High Court seeking that the insolvency proceedings be suspended and the formation of the Committee of Creditors (CoC) be stayed until its appeal was decided upon by the Chennai bench of the NCLAT.The High Court was appraised of concerns that a judicial member of the NCLAT Chennai may recuse from hearing the matter since he had earlier represented the BCCI as its lawyer. On Monday (July 29), the judicial member in question recused from hearing matter on this ground. Nevertheless, the writ petition was disposed of by the High Court on Tuesday (July 30) after the Court was informed that the NCLAT had already constituted another special Bench to hear the case. .Senior Counsels Arun Kathpalia and Dhyan Chinappa, briefed by advocates Rishabh Gupta, Zulfiquar Memon, Waseem Pangarkar, Nadiya Sarguroh from MZM Legal LLP appeared for Byju Raveendran.Solicitor General and Senior Counsel Tushar Mehta appeared for BCCI.Senior Counsel Mukul Rohatgi appeared for one of Byju's US based financial creditors.Arvindh Pandian for Khaithan and Co appeared for GLAS Trust Company LLC, another Financial Creditor..Corrigendum: An previous version of this article wrongly said that Senior Advocate Harish Salve appeared for BCCI. The error has been rectified and is regretted.