21 august 2024 : The educational technology company Think and Learn, which owns Byju’s, has not disbursed salaries for July to its employees due to a temporary stay imposed by the Supreme Court on the decision made by the National Company Law Appellate Tribunal (NCLAT), as stated by Byju Raveendran. This situation follows the NCLAT’s approval of a settlement concerning dues amounting to ₹158.9 crore with the BCCI and the subsequent annulment of insolvency proceedings against Byju’s on August 2. However, on August 14, the Supreme Court issued a stay on the NCLAT’s ruling, which had previously set aside the insolvency proceedings, in response to a petition from the US-based creditor Glas Trust Company LLC.
In an email addressed to employees, Byju Raveendran expressed that the various legal obstacles have prolonged the company’s path to recovery. He stated, “I wish to discuss a matter of significant concern to both you and myself. Your salary for July 2024 has not yet been processed.”
He further elaborated, “Our company has recently encountered a substantial challenge that led us into insolvency due to a conflict with the BCCI. We reached a settlement and were on the verge of regaining financial control following the favorable ruling from the NCLAT. However, the Supreme Court has temporarily stayed this decision, preventing the restoration of access to our accounts.”
Raveendran noted that some international lenders have been engaged in litigation against the company and have appealed the NCLAT’s ruling to the Supreme Court.
He assured, “The founders are currently unable to inject additional capital to cover salaries as we have consistently done in recent months. I assure you this: once we regain control, your salaries will be disbursed without delay, even if it necessitates incurring more personal debt. This is not merely a promise; it is a commitment. We have investors prepared to support our recovery efforts.”