Justice Sharad Kumar Sharma of the National Company Law Appellate Tribunal (NCLAT) recused himself on Monday from hearing an appeal filed by Byju’s co-founder, Byju Raveendran, challenging the insolvency proceedings against the edtech firm’s parent company, Think and Learn Pvt Ltd.
The recusal came after the National Company Law Tribunal (NCLT) admitted Think and Learn into insolvency on July 16 due to unpaid dues amounting to Rs 158 crore.
These dues relate to a sponsorship agreement with the Board of Control for Cricket in India (BCCI). Justice Sharma, who had previously represented the BCCI in various cases, stated, “I had been appearing as the senior counsel for the Board of Control for Cricket in India and have been closely associated with the BCCI in a number of cases. So, I will be refusing to hear this matter and place it before the hon’ble chairperson for nomination of an appropriate bench.”
NCLAT Chairperson Justice Ashok Bhushan will now appoint a new bench to handle the appeal.
Raveendran, who lost operational control of Think and Learn following the insolvency petition, has also sought relief from the Karnataka High Court.
He is requesting a suspension of the insolvency proceedings until the NCLAT considers his appeal. The Karnataka High Court is scheduled to hear this plea on Tuesday.
The insolvency petition was filed by the BCCI last September, alleging that Think and Learn defaulted on payments totaling Rs 158 crore. The dispute centers on payments due from October 2022 to March 2023, following a jersey sponsorship agreement signed in March 2019 and extended for an additional year.
The NCLT's order on July 16 included the suspension of Raveendran-led management and the appointment of an interim resolution professional to oversee the company’s operations.
The order also protects Byju’s assets from creditors and restricts any transfer or sale of these assets.
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