The National Company Law Tribunal (NCLT), Bengaluru Bench, on Wednesday stayed the insolvency bidding process of Think & Learn Private Limited, the parent company of edtech firm Byju's, until the next hearing on August 31. According to reports from Business Standard, the tribunal directed the resolution professional (RP) not to proceed with the issuance of Form G — the invitation for expressions of interest from prospective buyers — or finalise the list of prospective resolution applicants until further orders. The stay provides temporary relief to the company's founders amid ongoing financial stress and legal disputes. As reported by Live Mint, the tribunal accepting the need to examine the issue, ordered that the bidding process remain on hold until the matter is heard in detail.
The Byju's proposed ₹158 crore settlement with the BCCI (Board of Control for Cricket in India) remains unresolved despite repeated directions from the NCLT and eight meetings of the creditor panel since March. As reported by ET, the committee of creditors met on June 29, July 16, and July 20 but could not reach a decision. The settlement's approval or rejection will determine whether insolvency proceedings against Byju's parent company will continue. If creditors approve the deal and the NCLT accepts it, the insolvency process would end and the BCCI would receive the money. If they reject it, the ₹158 crore currently in escrow would return to Riju Ravindran, who funded the settlement, while the insolvency process would continue.
The stay came after an application filed by Byju's founders, Byju Raveendran and Riju Ravindran, challenging the admission of a ₹11,433 crore claim submitted by the representative of the company's US term loan lenders. As reported by Business Standard, the founders argued that allowing the claim to stand without scrutiny could significantly influence the corporate insolvency resolution process and affect the outcome of any bidding. In a separate application, the founders challenged GLAS Trust's authority and the size of its claim, alleging that 46 of 124 lenders had not signed the authority document relied on by GLAS. Their counsel argued that overseas asset recoveries should reduce its claim, with GLAS and the resolution professional disputing these contentions.
The decision temporarily halts the next stage of the insolvency proceedings, preventing potential buyers from entering the process while the tribunal considers the founders' objections. According to Business Standard, the order does not end the insolvency proceedings; it merely pauses the invitation and selection of resolution applicants. The matter will now come up for hearing on August 31, when the tribunal is expected to consider the validity of the lenders' claim and decide whether the insolvency bidding process can resume. The temporary pause gives the founders limited relief but does not halt the entire insolvency proceeding.
The decision has become linked to wider settlement talks involving GLAS Trust, which represents the US lenders, Byju's founders, Manipal group, and Aakash Educational Services. As reported by ET, the lenders have been negotiating for a roughly 30% stake in Aakash as part of an arrangement that could end litigation across India, the US, and Singapore. Any transfer of Aakash shares to the lenders would need to be implemented through a resolution plan for Think & Learn. The tribunal has also directed that the settlement money be placed in an interest-bearing fixed deposit with a nationalised bank and should not be dealt with without NCLT approval. The sequencing of these settlements has made the timing of the BCCI decision commercially significant, though no final agreement has been signed.
