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The
Supreme Court order is a setback for founder Byju Raveendran
whose eponymous online coaching company was valued at $22
billion in 2022 before suffering setbacks including boardroom
exits, an auditor resignation, and a public spat with foreign
investors over alleged mismanagement. The company has denied any
wrongdoing.
Byju's was undergoing insolvency proceedings following a
complaint by India's cricket body which said it was not paid
sponsorship dues. But the two sides settled the matter and a
tribunal quashed the process, prompting U.S. lenders represented
by Glas Trust to approach the Supreme Court.
"We are staying the (appeals tribunal) judgment," Chief Justice
of India DY Chandrachud said in court, setting the next date of
hearing as Aug. 23.
Byju's did not immediately respond to a request to comment on
the court order.
During the court hearing, both the Indian cricket board and
Byju's lawyers opposed the request from Glas Trust.
Byju's lawyer, Abhishek Manu Singhvi, raised concerns in court
that putting on hold the tribunal's decision would revive the
entire insolvency proceedings.
Just this month, Byju's had agreed to pay $19 million in dues to
the cricket board to settle their dispute and get insolvency
quashed, but Wednesday's ruling is set to complicate matters for
the company.
Glas has argued Byju's used the money owed to lenders to clear
the cricket board's dues.
Byju's, which operates in more than 21 countries, became popular
during the COVID-19 pandemic by offering online education
courses. It has around 27,000 employees, including 16,000
teachers.
It has warned that insolvency proceedings will likely force
thousands of employees to quit and result in a total shutdown of
its services.
(Reporting by Arpan Chaturvedi in New Delhi, Writing by Hritam
Mukherjee in Bengaluru; Editing by Aditya Kalra, Muralikumar
Anantharaman and Mark Potter)
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