The Supreme Court on Wednesday questioned the verdict of insolvency appellate tribunal NCLAT, setting aside the insolvency proceedings against edtech major Byju’s and approving its ₹158.9 crore dues settlement with the BCCI.

Observing that the National Company Law Appellate Tribunal (NCLAT) did not apply its mind while closing the insolvency proceedings against the edtech major, a bench headed by Chief Justice D.Y. Chandrachud orally observed that it may send back the dispute for fresh adjudication.

“We want to know … when the quantum of the debt is so large can one creditor walk away saying the promoter is ready to pay me? Today you have ₹15,000 crore debt. Why pick up BCCI and only settle with them? What about others (creditors)?” a bench of Chief Justice D.Y. Chandrachud, Justice J.B. Pardiwala and Justice Manoj Misra asked senior advocate Abhishek Manu Singhvi.

Singhvi defended the NCLAT’s impugned order dated August 2 on the ground it was passed on an insolvency petition filed by the BCCI. Since the cricket board had entered into a settlement with Byju’s there was no error in the tribunal’s decision.

The senior counsel also said the settlement was reached on the basis of the personal funds available with Riju Raveendran, brother of Byju Raveendran. However, the CJI was not convinced with the argument and asked Singhvi to refer to the order passed by the NCLAT which he said reflected non-application of mind by the tribunal.

“See the reasoning adopted by the tribunal which is just a para. This does not show any proper application of mind at all. Let the tribunal again apply its mind and look at the issue afresh,” the bench orally observed, while adjourning the matter for further hearing to Thursday.