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The National Company Law Tribunal (NCLT) on July 16 admitted embattled ed-tech company Byju's parent Think and Learn to insolvency resolution process in a plea filed by the Board of Control for Cricket in India (BCCI).
The tribunal has appointed Pankaj Srivastava as the interim resolution professional, in charge of running the company till the lenders form a committee known as the Committee of Creditors.
"The Interim Resolution Professional shall after collation of all the claims
received against Think and Learn Pvt Ltd the Corporate Debtor and the
determination of the financial position of the Corporate Debtor constitutes a Committee of Creditors," the order said.
The NCLT also dismissed Byju's request to refer the dispute to arbitration. The company is now under moratorium, which means, all its debts and interest on debts will remain frozen till its lifted by the NCLT through an order. The COC, will now run the company through the IRP/RP for a maximum period of 330 days, if the COC is able to sell the company to an interested party through a bidding process, the company could be revived. However, if the CoC fails to find a buyer in the 330 days, the NCLT will order the company to be liquidated.
Raveendran or any member of the board of the company can appeal against this order in the National Company Law Appellate Tribunal (NCLAT) and at the Supreme Court thereafter. However, lifting the CIRP is purely at the discretion of the court.
The case, which was filed by the BCCI on September 8, 2023, came up for a hearing only on November 28 last year. At the very first hearing, the NCLT issued a notice to Byju’s and sought its response.
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