BYJU’S today welcomed the decision of the Delaware Bankruptcy Court to reject attempts by GLAS Trust Company (purporting to represent the foreign lender consortium) to impede the company’s ongoing turnaround efforts.
This ruling reinforces the validity of the settlement between the Board of Control for Cricket in India (BCCI) and Think & Learn Private Limited (TLPL), BYJU’S holding company, which was previously approved by India’s National Company Law Appellate Tribunal (NCLAT).
In a significant development, Judge Brendan Shannon of the Delaware Bankruptcy Court rejected GLAS’ application for a temporary restraining order aimed at blocking the BCCI settlement.
The judge expressed deep concern about being asked to interfere with proceedings in another country’s judicial system, stating, “I am deeply concerned that I am being asked for relief that would frustrate proceedings in another country.” This statement aligns with BYJU’S counsel’s assertion that such interference “would be an unimaginable insult to the system in India.”
The court’s decision affirmed that it has no jurisdiction over the BCCI to halt the settlement and recognized that granting GLAS’ requested relief would be an extraordinary and unjustified measure. This ruling follows GLAS’ unsuccessful attempt to convince the NCLAT in India to block the settlement, further validating BYJU’S position and the integrity of the Indian legal process.
Rishab Gupta, legal counsel for BYJU’S, stated, “The Delaware Bankruptcy Court’s decision effectively puts an end to GLAS’ attempts to forum shop. GLAS had tried – and failed – to scuttle the settlement between BCCI and one of the promoters of BYJU’S before the NCLAT in India, prompting them to approach the Delaware court for the same relief.
In its latest order, the Delaware court has upheld the principle of comity and thwarted GLAS’ attempt to usurp the jurisdiction of the Indian courts.”
