Byju's CoC formation upheld by NCLAT, Byju Raveendran's appeal rejected
BYJU'S Insolvency Proceedings Continue as NCLAT Upholds Committee of Creditors' Validity
In a significant development, the National Company Law Appellate Tribunal (NCLAT) in Chennai has dismissed an appeal filed by Byju Raveendran, the suspended director and promoter of Think and Learn Private Limited (BYJU'S), challenging the validity of the Committee of Creditors (CoC) in the ongoing insolvency proceedings of the educational technology company.
The appeal, which was related to the validity of the CoC in the insolvency proceedings of BYJU'S, was rejected by the NCLAT in August 2025. The NCLAT upheld the original CoC constituted on August 21, 2024, including restoring Aditya Birla Finance Ltd. as a Financial Creditor.
The decision clarified that there is no concept of "provisional constitution" of the CoC under the Insolvency and Bankruptcy Code (IBC), and once constituted, the CoC is final unless modified by the Adjudicating Authority. The NCLAT Chennai bench held that the Resolution Professional has no power under the IBC to reconstitute the CoC once it is constituted.
The appeal that was dismissed was under Section 61 of the IBC, which challenged the NCLT Bengaluru Bench’s order dated January 29, 2025. That order had ruled that the Interim Resolution Professional (IRP) lacked authority to reconstitute the CoC and set aside the reconstitution dated August 31, 2024.
The insolvency proceedings for BYJU'S are ongoing, and the NCLAT's decision may have implications for the outcome of the insolvency resolution process. The NCLAT's decision is also significant as it sets a precedent for the validity of CoCs in insolvency proceedings, which may affect the creditors' rights and the overall resolution process in the insolvency proceedings for BYJU'S.
The case is referred to as Byju Raveendran Vs Aditya Birla Finance. This decision may also impact the future actions of suspended directors and promoters in insolvency proceedings, providing clarity on the powers and limitations of various parties involved in the insolvency process under the IBC.
With the NCLAT's decision, the CoC can continue to oversee the insolvency proceedings for BYJU'S. The educational technology company will now move forward with the insolvency resolution process under the guidance of the validated CoC.
References:
- Livemint
- Business Standard
- Economic Times
- The Hindu
- Financial Express
The NCLAT's dismissal of Byju Raveendran's appeal upholds the Committee of Creditors' (CoC) validity in the ongoing insolvency proceedings of BYJU'S, a significant development in the financial aspect of the educational technology company's business. In August 2025, the NCLAT rejected the appeal related to the CoC's validity, which had been an essential part of the business discussions surrounding BYJU'S insolvency.
