India’s National Company Law Tribunal (NCLT) has ordered a stay on the insolvency bidding process for Think & Learn Pvt Ltd, BYJU’S parent, delaying it until the next hearing scheduled for August 31 while key claims remain under judicial review.
- NCLT halts bidding phase until August 31, but insolvency continues
- Dispute centers on ₹11,433 Cr US term loan lender claim
- Potential settlement involves lenders acquiring 30% stake in Aakash
What happened
The National Company Law Tribunal’s Bengaluru bench has stayed the issuance of Form G, which invites expressions of interest from bidders in the insolvency resolution process of Think & Learn Pvt Ltd, the parent company of BYJU’S. This means the list of potential bidders cannot be finalized until after the next hearing on August 31. While the bidding process is on hold, the overall corporate insolvency proceedings continue.
This order follows a petition filed by BYJU and Riju Raveendran, the company’s cofounders, who contested the recognition of a major ₹11,433 crore claim made by the trustee representing the company’s US term loan lenders. The tribunal found the dispute significant enough to warrant thorough judicial consideration before the bidding could proceed further.
Why it matters
The stay highlights the growing legal complexity surrounding BYJU’S insolvency case, which began over a ₹158 crore owed sponsorship payment to the BCCI requiring resolution under India’s Insolvency and Bankruptcy Code. Multiple important stakeholders, including foreign lenders and educational service providers like Aakash, are deeply involved in the ongoing legal and financial negotiations.
Further complicating matters are global legal entanglements, such as a civil contempt sentence against BYJU’S founder Byju Raveendran in Singapore, which affects the company’s leadership stability amid the insolvency process. The unfolding legal battles underscore the challenges in resolving financial distress in large, multinational edtech firms.
What to watch next
The critical next date is August 31, when the NCLT will revisit the matter and decide whether to lift the stay on the bidding process. The outcome will influence how the insolvency resolution unfolds and what bidders may participate, shaping BYJU’S restructuring and ownership future.
Meanwhile, there are promising indications of a settlement being negotiated involving the US term loan lenders, who may acquire a roughly 30% stake in Aakash Educational Services, valued at about $2 billion. Such a deal could potentially end ongoing litigation if lenders agree to drop claims against the company and founders in exchange for equity, offering a possible resolution pathway.