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SUPREME COURT OF INDIA
Dr Dhananjaya Y Chandrachud, CJ
GLAS Trust Company LLC – Appellant
Versus
BYJU Raveendran & Ors. – Respondent
Key Points: - The Supreme Court allowed the appeal by GLAS Trust Company LLC against NCLAT's judgment approving a settlement between BCCI (operational creditor) and Think and Learn Pvt Ltd (corporate debtor) without following IBC procedures [1][2][86]. - NCLT admitted BCCI's Section 9 petition on 16 July 2024, initiating CIRP against the corporate debtor, while disposing of GLAS's Section 7 petition with liberty to revive [11][12]. - Settlement involved Riju Raveendran paying Rs 158 crore in tranches to BCCI, approved by NCLAT under Rule 11 despite no CoC constitution and procedural deviations [15][16][23]. - Post-admission, CIRP proceedings become collective (in rem), requiring adherence to Section 12A IBC and Regulation 30A CIRP Regulations for withdrawal, not inherent powers [42][63]. - NCLAT erred by invoking Rule 11 of NCLAT Rules to approve settlement bypassing the requirement for application through IRP to NCLT before CoC formation [77][78][79]. - Appellant (financial creditor) has locus to challenge as "any person aggrieved" under Section 62 IBC, being a stakeholder in collective proceedings [73][74][75]. - Inherent powers under Rule 11 cannot circumvent exhaustive statutory procedures like Section 12A and Regulation 30A [64][69][80]. - NCLAT failed to adequately address appellant's objections on fund sources, round-tripping, and Delaware Court orders [81]. - Appeal allowed; NCLAT judgment set aside; Rs 158 crore to be deposited with CoC, which must abide by NCLT directions [86][88]. - Parties may seek withdrawal compliant with IBC framework now that CoC is constituted [87].
| Table of Content |
|---|
| 1. case origin and initial proceedings. (Para 1 , 2) |
| 2. parties involved in the appeal. (Para 3 , 4 , 5) |
| 3. conduct and disputes related to the corporate debtor. (Para 6 , 7 , 8 , 9 , 10) |
| 4. insolvency proceedings details. (Para 11 , 12 , 13) |
| 5. settlement process overview. (Para 14 , 15 , 16 , 17 , 18) |
| 6. nclat's reasoning and judgement. (Para 19 , 20 , 21 , 22) |
| 7. status of the proceedings with the court and the ongoing cases. (Para 23 , 24 , 25 , 26) |
| 8. emergence of legal issues. (Para 27 , 28 , 29) |
| 9. arguments presented by both parties. (Para 30 , 31 , 32) |
| 10. position of the second respondent. (Para 33) |
| 11. legal context and fundamental principles involved. (Para 34 , 35 , 36 , 37 , 38) |
| 12. framework of insolvency proceedings. (Para 39 , 40 , 41 , 42) |
| 13. importance of stakeholder involvement. (Para 43 , 44 , 45 , 46) |
| 14. critical scrutiny of legal and procedural matters. (Para 47 , 48 , 49 , 50) |
| 15. proper procedural requirements. (Para 51 , 52 , 53) |
| 16. inherent powers and statutory requirements. (Para 54 , 55 , 56 , 57 , 58) |
| 17. ratio decidendi regarding withdrawal of applications. (Para 63 , 64 , 65 , 66) |
| 18. final judgement and directions given. (Para 86 , 87 , 88 , 89 , |
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