US court turns down GLAS’ plea: Byju’s

New Delhi: A US court has rejected GLAS Trust Company’s application for a temporary restraining order aimed at blocking the BCCI settlement, edtech firm Byju’s said on Thursday.

Early this month, insolvency appellate tribunal NCLAT had approved a Rs158.9 crore dues settlement with BCCI and set aside insolvency proceedings against Byju’s. Think and Learn, which owns Byju’s brand, said it welcomes the decision of the Delaware Bankruptcy Court to reject attempts by GLAS (purporting to represent the foreign lender consortium) to impede the company’s ongoing turnaround efforts. GLAS had also opposed the settlement with the BCCI before the NCLAT alleging the money paid by Riju Raveendran as tainted and a case of “round-tripping’.

Byju’s said that Delaware Court ruling reinforces the validity of the settlement between the Board of Control for Cricket in India (BCCI) and Think & Learn, which has been approved by the National Company Law Appellate Tribunal (NCLAT).

“The Delaware Bankruptcy Court’s decision effectively puts an end to GLAS’ attempts to forum shop. GLAS had tried and failed to scuttle the settlement between BCCI and one of the promoters of Byju’s before the NCLAT in India, prompting them to approach the Delaware court for the same relief.

“In its latest order, the Delaware court has upheld the principle of comity and thwarted GLAS’ attempt to usurp the jurisdiction of the Indian courts,” Byju’s legal Counsel, Rishab Gupta said.