NCLT stays Byju’s insolvency till Aug-end, marginal relief for founders

The decision temporarily halts the next stage of the insolvency proceedings, preventing potential buyers from entering the process while the Tribunal considers the founders’ objections | Photo Credit: bl-online Administrator

The National Company Law Tribunal has stayed the insolvency bidding process of Byju’s parent company Think & Learn till the next hearing on August 31, providing temporary relief to the company’s founders.

The Bengaluru bench of NCLT directed the resolution professional not to proceed with the issuance of Form G —the invitation for expressions of interest from prospective buyers —or to finalise the list of prospective resolution applicants until further orders.

The stay came after an application filed by Byju’s founders, challenging the admission of a ₹11,433 crore claim submitted by the trustee representing the company’s US term loan lenders.

The founders argued that allowing the claim to stand without scrutiny could significantly influence the corporate insolvency resolution process and affect the outcome of any bidding.

Accepting the need to examine the issue, the NCLT ordered that the bidding process remain on hold until the matter is heard in detail.

The decision temporarily halts the next stage of the insolvency proceedings, preventing potential buyers from entering the process while the Tribunal considers the founders’ objections. However, the order does not end the insolvency proceedings, but merely pauses the invitation and selection of resolution applicants.

The case is part of the ongoing insolvency process involving Byju’s, which has faced financial stress, legal disputes with lenders, and multiple regulatory and operational challenges over the past year.

The Tribunal is expected to consider the validity of the lenders’ claim in the next hearing and consider resuming the insolvency process.

Published on July 23, 2026