The National Company Law Appellate Tribunal (NCLAT) on Friday approved the settlement proposed by the founders of Byju’s with the Board of Control for Cricket in India (BCCI), paving the way for the embattled edtech firm to exit the insolvency process.

The NCLAT Chennai bench comprising judicial member Rakesh Kumar Jain and technical member Jatindranath Swain set aside the insolvency order of the National Company Law Tribunal (NCLT) but warned any failure to make payments on the specific dates mentioned in the undertaking would automatically lead to revival of the insolvency proceedings against Byju’s.

It dismissed the charges made by Byju’s US-based lenders that the money was tainted, saying they failed to provide any evidence for the same.

“In view of the undertaking given and affidavit, the settlement between the parties (is) approved and as a result appeal succeeds and impugned order (passed by the NCLT) is set aside,” the bench said.

According to the undertaking, Riju Ravindran has made a payment of ₹50 crore on July 31 against the outstanding dues owed by Byju’s to BCCI. Another ₹25 crore will be submitted on Friday, and the rest of ₹83 crore on August 9 through RTGS.

The NCLAT was hearing a petition filed by Byju’s, challenging the initiation of insolvency proceedings against parent Think & Learn.

On July 16, the Bengaluru bench of the National Company Law Tribunal (NCLT) directed the initiation of corporate insolvency resolution proceedings (CIRP) against Byju’s, admitting the plea filed by the Board of Control for Cricket in India (BCCI).

The BCCI had approached the NCLT under the Insolvency and Bankruptcy Code (IBC) over a default of ₹158.9 crore by Think & Learn.

The NCLT has suspended the board of Think & Learn under the provisions of the IBC and appointed an interim resolution professional to take care of the debt-ridden firm.

Byju’s on Friday said the National Company Law Appellate Tribunal’s order setting aside insolvency proceedings against the company is a “major victory” for the edtech firm and its founders.

The appeals tribunal’s order is a rejection of the allegation that the source of the money being used to settle the cricket dues “was not transparent or trustworthy”, Byju’s said. Glas Trust can appeal Friday’s order at India’s Supreme Court.

Byju’s was valued at $22 billion in 2022 before suffering setbacks, including boardroom exits, an auditor resignation, and a public spat with foreign investors over alleged mismanagement.

Byju’s, which operates in more than 21 countries, has around 27,000 employees, including 16,000 teachers.

With inputs from Reuters & PTI