The Supreme Court of India last week agreed to consolidate the hearing of the plea filed by the Glas Trust Company LLC against India’s troubled edtech company BYJU’s. The hearing was scheduled for September 17.
Glas Trust, a U.S.-based creditor of Bengaluru-based edtech company, on Tuesday, told the Supreme Court that it had been falsely removed from the Committee of Creditors (CoC) by the Interim Resolution Professional, Pankaj Srivastava.
Senior Advocate Kapil Sibal who appeared for Glas Trust, made submissions before the bench comprising Chief Justice DY Chandrachud, Justice JB Pardiwala, and Justice Manoj Misra.
Glas Trust in front of the Apex court said that its removal from the CoC had quashed its 99.41 percent of the claim amounting to INR 11,000 crore which BYJU’s had to bear.
Glas Trust said that they were disqualified for not supplying certain documents to the IRP. They also claimed that the IRP had rescheduled the CoC meeting without informing them.
“After verifying he has disqualified us and the person who has 0.59 per cent (is there),” Sibal took a jibe at Pankaj Srivastava
“According to Section 22(1) of the Insolvency and Bankruptcy Code, IRP had to hold a meeting on August 27. He adjourned it to September 3 without informing us,” Sibal said.
Senior Advocate NK Kaul who represented BYJU’s, told the court that the petitioners in the matters are only hedge funds internationally dealing with stressed assets.
“These are people who recalled a loan three and a half years before it was due on a technical difficulty. This was challenged in the New York courts, which has exclusive jurisdiction, and the matter is pending in the New York court. When the settlement was being arrived at, they moved the petition before the Delaware courts for a TRO (temporary restraining order) action as your Lordships are well aware,” said Kaul
“So all these people come before this court and say all this bogey saying they are defaulters; they are fleeing the country. Who is fleeing the country? In the last one year we have come to India 10 times. Not one Interpol notice, not one ED complaint. Only technical defaults on FEMA are pending,” Kaul added.
Glas Trust’s appeal overturned the National Company Law Appellate Tribunal‘s (NCLAT) decision to halt insolvency proceedings against BYJU’s after approving the payment of sponsorship dues of ₹158 crores to Board of Control for Cricket in India (BCCI). The decision came back in July.
Pankaj Srivsatava, the IRP, removed Glas Trust from the CoC, claiming that they do not represent the minimum of 51 per cent of lenders in the consortium, sources said.
Meanwhile, the Bengaluru bench of the National Company Law Tribunal has deferred its decision on a plea filed by Glas Trust seeking a stay on the committee of creditors’ meetings to be conducted in the BYJU’s insolvency case.
The Supreme Court said it will hear the matter on Wednesday, September 18.
I am not sure how many people will agree with me but downfall of byju is so satisfactory.