The Supreme Court of India has dismissed the plea filed by Byju Raveendran, challenging the NCLAT’s April 17 order that any settlement with the BCCI must receive prior approval from the Committee of Creditors (CoC). The ruling reaffirms the legal requirement that withdrawal of insolvency proceedings against Byju’s EdTech company cannot proceed without the CoC’s consent under the Insolvency and Bankruptcy Code.

The NCLAT had previously clarified that settlements with creditors or other parties, including the Board of Control for Cricket in India, require CoC approval to ensure fairness and transparency in the insolvency resolution process. Byju Raveendran had argued that a settlement with the BCCI should not be subject to this condition, citing commercial considerations and urgency, but the Supreme Court upheld the appellate tribunal’s decision.

Legal experts note that the judgment strengthens the authority of the CoC in supervising insolvency cases and maintaining checks over settlements. It ensures that the process remains equitable for all creditors, preventing unilateral decisions by corporate debtors that may affect financial recovery.

The ruling also emphasizes the importance of adhering strictly to procedural norms under the Insolvency and Bankruptcy Code. It signals that parties seeking to exit or resolve insolvency proceedings must engage with creditors transparently and obtain formal consent, reinforcing accountability in corporate financial governance.

Byju Raveendran’s plea was among several high-profile cases highlighting the complexities of corporate settlements and creditor oversight in India. The Supreme Court’s decision clarifies that any attempt to bypass the CoC’s authority in settlement matters is unlikely to succeed, reinforcing the regulatory framework governing insolvency resolutions.

With this ruling, the framework for corporate settlements in India becomes more predictable, underscoring the judiciary’s role in upholding the rights of creditors while balancing the interests of businesses navigating financial distress.