Today, the Supreme Court agreed to expedite the appeal of Glas Trust Company LLC, a US-based creditor, challenging the NCLAT's decision. The NCLAT had halted insolvency proceedings against ed-tech firm BYJU’s and approved a settlement of Rs 158.9 crore in dues with the BCCI.

A bench led by Chief Justice D.Y. Chandrachud, along with Justices J.B. Pardiwala and Manoj Misra, was petitioned by senior advocate N.K. Kaul, representing the ed-tech company, to prioritize an early hearing of the case.

Kaul said, “The only funding was done by the promoters and today no one has brought any external borrowing. We have to show today how malafide the petition (of US firm) is.” “I will get it listed as early as possible,” the CJI, who was indisposed and in quarantine for the last few days, said.

Senior advocate Kapil Sibal, representing the US-based creditor, also requested an expedited hearing for the case.

On August 22, the bench declined to issue an interim order preventing the committee of creditors (CoC) from holding meetings related to the insolvency proceedings against the troubled ed-tech firm. The plea was scheduled for a final hearing on August 27. The bench noted that any developments occurring in the interim could be addressed if it later finds that the appeal from the US-based creditor lacks merit against the NCLAT's judgment.

On August 20, Byju's and the BCCI had also mentioned the plea, but the Supreme Court refused to issue an interim order to prevent the Insolvency Resolution Professional (IRP) from forming a committee of creditors (CoC) for the insolvency proceedings against Byju's.

In a significant setback for Byju's, the Supreme Court had on August 14 stayed the NCLAT's decision that had overturned the insolvency proceedings and approved the Rs 158.9 crore dues settlement with the BCCI. The NCLAT's August 2 ruling had been a major relief for Byju's, restoring control to its founder, Byju Raveendran.

However, the Supreme Court had initially deemed the NCLAT verdict "unconscionable," stayed its implementation, and issued notices to Byju's and others in response to the appeal from the US-based creditor.

The case originated from Byju's failure to make a Rs 158.9 crore payment related to a sponsorship deal with the BCCI. The Supreme Court directed the BCCI to hold the Rs 158 crore received from Byju's in a separate escrow account until further notice.

"Issue notice. Pending further orders there shall be a stay of the impugned order of August 2 of NCLAT. In the meantime, BCCI shall maintain the amount of Rs 158 crore, which shall be realised in pursuance of a settlement, in a separate escrow account until further orders," the bench had said.

The NCLAT had approved the Rs 158.9 crore settlement with the BCCI and annulled the insolvency proceedings against Byju's.

Back in 2019, Byju's had signed a "Team Sponsor Agreement" with the BCCI, securing exclusive rights to display its brand on the Indian cricket team's kit and receive other benefits. While Byju's met its sponsorship obligations until mid-2022, it defaulted on subsequent payments totaling Rs 158.9 crore. Following the initiation of insolvency proceedings, Byju's reached a settlement with the BCCI.

On July 16, the Bengaluru bench of the National Company Law Tribunal (NCLT) admitted 'Think and Learn,' Byju's parent company, to the insolvency resolution process in response to a plea from the BCCI over a default on nearly Rs 158.9 crore in outstanding dues. The NCLT suspended the board of the ed-tech firm, appointed an interim resolution professional to manage the company's operations, and placed it under moratorium by freezing its assets.

US-based lenders raised concerns that the settlement amount with the BCCI might be diverted from the credit they had extended to Byju's.