September 26, 2024: In a significant development for the troubled edtech giant Byju’s, the Supreme Court of India has ordered a halt to all proceedings related to its corporate insolvency resolution process (CIRP). The decision, announced on Thursday, comes as the court deliberates the validity of a payment settlement between Byju’s and the Board of Control for Cricket in India (BCCI).

The bench, headed by Chief Justice Dhananjaya Y. Chandrachud, issued an interim restraining order preventing the resolution professional (RP) from conducting any meetings or advancing the insolvency process. This ruling is a response to a petition challenging a previous order by the National Company Law Appellate Tribunal (NCLAT), which allowed BCCI to settle dues amounting to ₹58 crore with Byju’s.

"The judgment is reserved in the matter. Until the judgment is delivered, the resolution professional shall maintain the status quo and will not proceed," stated Chief Justice Chandrachud, joined by Justices JB Pardiwala and Manoj Misra. The court's intervention was prompted by concerns raised about a scheduled meeting of the Committee of Creditors (CoC) that was set to take place later on Thursday.

This recent order follows the Supreme Court's earlier decision on August 14, when it suspended the NCLAT ruling that had permitted the settlement with BCCI, thereby reviving insolvency proceedings against Byju’s. As part of that ruling, the court instructed that the ₹158 crore already paid by Byju’s to BCCI be placed in a separate escrow account until further notice.