Overseas lenders of the edtech startup Byju's are challenging a decision that terminated insolvency proceedings against the embattled firm. The appeal, filed by US-based Glas Trust on behalf of some lenders of a Byju's group company, contested the ruling by the National Company Law Appellate Tribunal (NCLAT) that allowed Byju's and the Board of Control for Cricket in India (BCCI) to resolve a payment dispute amounting to $19 million. Glas Trust had previously opposed the settlement at the Indian appeals tribunal, but their objection was dismissed.
During the tribunal proceedings, Glas Trust accused Byju Raveendran, the founder of Byju's, and his brother of utilizing the money owed to lenders to settle the dues of the cricket board. Raveendran's brother, who made the payments, claimed that the funds used were from personal resources and the liquidation of personal assets. The appeal lodged by Glas Trust is set to be heard by the Supreme Court on August 11, with Byju's yet to provide a response to a request for comment from Reuters.
Byju's, the education technology company in question, has encountered a series of challenges in recent years, including departures from the boardroom, the resignation of an auditor, and contentious issues with foreign investors over allegations of mismanagement. The ongoing legal battle regarding insolvency proceedings adds to the tumultuous period for the firm, which has faced various internal and external difficulties.