The Supreme Court on Monday reserved its order on a plea by the Committee of Creditors (CoC) of Think & Learn Private Limited, the parent company of Byju’s, seeking to be heard in a case concerning the removal of GLAS Trust Company LLC from the CoC.
The CoC is the main decision-making body formed during the insolvency process of a financially distressed company.
A Bench of Justice J B Pardiwala and Justice K Vinod Chandran reserved the matter after hearing arguments on whether the CoC should be heard in proceedings that could affect its composition and past decisions.
The dispute arose from an application filed by former Byju’s director Riju Ravindran before the National Company Law Tribunal (NCLT), Bengaluru, seeking GLAS Trust’s removal from the four-member CoC.
Senior Advocate Amit Sibal, appearing for the CoC, said the committee was a necessary party as the relief sought directly affected its functioning.
Ravindran had also sought consequential relief against decisions taken by the CoC, he said.
“The party who is directly affected by the relief sought in an application is a necessary party,” Sibal submitted.
The NCLT had rejected the CoC’s plea to be impleaded. The National Company Law Appellate Tribunal (NCLAT), in its February 24 order, held that although the CoC could litigate in its own name under the Insolvency and Bankruptcy Code, it was neither a necessary nor a proper party to Ravindran’s application.
Sibal said Ravindran’s application had already been heard and judgment reserved without the CoC being given an opportunity to present its case.
Senior Advocate Rohan Thawani, appearing for Ravindran, said his client would not oppose the CoC being heard in view of the Supreme Court’s interim orders.
He, however, sought time-bound disposal of the application, pointing out that the proceedings were affecting the company’s assets.
Thawani also submitted that arguments before the NCLT had concluded and reopening the matter could cause further delay.
The Bench indicated that the matter could be sent back to the NCLT to hear the CoC without requiring the other parties to repeat their submissions.
