New Delhi: In a new turn of events, a US court has denied GLAS Trust Company’s request for a temporary restraining order to block the Board of Control for Cricket in India’s (BCCI) settlement, edtech firm BYJU’S announced on Thursday.
Earlier this month, the National Company Law Appellate Tribunal (NCLAT) approved a Rs158.9 crore dues settlement with BCCI and dismissed insolvency proceedings against BYJU’S.
Think and Learn, the owner of the BYJU’S brand, welcomed the Delaware Bankruptcy Court’s decision to turn down GLAS’ (claiming to represent the foreign lender consortium) efforts to hinder the company’s ongoing turnaround initiatives.
Charge of ’round-tripping’
GLAS had also contested the settlement with BCCI before the NCLAT, alleging that the money paid by Riju Raveendran was tainted and a typical example of ‘round-tripping’.
BYJU’S stated that the Delaware Court’s ruling reaffirms the legitimacy of the settlement between BCCI and Think & Learn, as approved by the NCLAT.
“The Delaware Bankruptcy Court’s decision effectively ends GLAS’ attempts at forum shopping. GLAS had unsuccessfully tried to derail the settlement between BCCI and one of BYJU’S promoters before the NCLAT in India, prompting them to seek the same relief from the Delaware court,” said BYJU’S legal counsel, Rishab Gupta.
He added that in its latest order, the Delaware court upheld the principle of comity and thwarted GLAS’ attempt to undermine the jurisdiction of the Indian courts,
