BYJU'S NCLAT case: Judge recuses from hearing Raveendran's plea against insolvency

Regarding the plea against the insolvency of Think & Learn before the National Company Law Appellate Tribunal (NCLAT), the case was adjourned today, Monday, July 29, as one of the members of the bench who was hearing the case recused from the hearing.

The matter was being heard by a two-member Chennai-based bench of the NCLAT comprising Justice Sharad Kumar Sharma, Member (Judicial), and Jatindranath Swain, Member (Technical), stated a report by PTI.

But Justice Sharma recused himself stating that he had appeared as the counsel for the Board of Control for Cricket in India (BCCI) before his elevation.

"I have appeared as a senior counsel for (the) BCCI. Since they are the main beneficiaries of this order, I cannot take this up," said Sharma.

Now, the matter will be placed before Justice Ashok Bhushan, Chairman, NCLAT, who will then decide upon a different bench who will be hearing the matter. 

What happened so far?
The plea against insolvency of Think & Learn, the parent company of EdTech BYJU'S, was filed by Founder Byju Raveendran challenging the initiation of insolvency proceedings against Think & Learn.

On July 16, the Bengaluru bench of the National Company Law Tribunal (NCLT) had directed Corporate Insolvency Resolution Proceedings (CIRP), admitting the plea filed by the BCCI.

The BCCI had approached the NCLT under the Insolvency and Bankruptcy Code (IBC) over a default of Rs 158.9 crore by Think & Learn. It may be recalled that the start-up was worth an estimated USD 22 billion at one point.

Also, NLCT had suspended the board of Think & Learn as per the provisions of the IBC and had appointed an interim resolution professional (IRP) to take care of the debt-ridden firm.

Byju Raveendran had challenged this order of NCLT before the appellate tribunal NCLAT and had approached the Karnataka High Court too. The hearing fo the latter has been deferred to July 30.