New Delhi | July 21, 2025
The Supreme Court has rejected the appeals filed by BCCI and Byju’s director Riju Ravindran, refusing to interfere with a National Company Law Tribunal (NCLT) ruling that mandates Committee of Creditors (CoC) approval before any withdrawal of insolvency proceedings against ed-tech giant Think & Learn Pvt Ltd (Byju’s).
A two-judge bench comprising Justice J.B. Pardiwala and Justice R. Mahadevan upheld the principle that once a CoC is constituted, no settlement or withdrawal from the insolvency process is possible without their nod under Section 12A of the Insolvency and Bankruptcy Code (IBC).
Background: How It Started
The case began when BCCI, a financial creditor, initiated insolvency proceedings against Byju’s over an unpaid sponsorship claim of ₹158.9 crore. The NCLT Bengaluru admitted the petition in July 2024, triggering the Corporate Insolvency Resolution Process (CIRP).
Following admission, Byju’s sought to settle the dispute with BCCI and applied to withdraw the CIRP. However, this attempt hit a roadblock due to procedural compliance—specifically, the need for 90% CoC approval for withdrawal under IBC.
What the Supreme Court Said
In its ruling, the apex court stated that settlement between parties cannot override the rights of all creditors involved once the insolvency process formally begins. The Court sided with the NCLAT’s earlier observation that Form FA (withdrawal application) filed by BCCI could not bypass CoC scrutiny.
“The moment a CoC is in place, its mandate must be honoured,” the bench said, emphasizing the sanctity of collective creditor decision-making under the IBC framework.
The Court found no procedural fault in the NCLT’s decision and dismissed the appeals without granting any interim relief.
Key Legal Issues
Legal Issue Supreme Court’s View
Can CIRP be withdrawn without CoC nod if parties settle? No – Once CoC is constituted, consent is essential.
Is Form FA valid if dated before CoC formation? Not sufficient – What matters is filing date, not preparation date.
Do operational/founder interests override creditor rights? No – Creditors’ collective will is paramount.
Case Title: Board of Control for Cricket in India & Riju Ravindran v. Pankaj Srivastava (RP, Think & Learn Pvt Ltd)
