In a major turnaround, the Supreme Court has overturned the National Company Law Appellate Tribunal's verdict that had put a hold on insolvency proceedings against ed-tech company Byju's. The apex court also reversed the NCLAT's order approving Byju's settlement of Rs 158.9 crore with the Board of Control for Cricket in India (BCCI). The decision came after US firm Glas Trust Company LLC appealed against the NCLAT's order, with the apex court stating that the tribunal didn't apply its mind while closing the insolvency proceedings against Byju's. The verdict marks a major setback for Byju's, which had received a brief reprieve after the NCLAT's ruling in its favor.
NCLAT Verdict Overturned: SC Allows Insolvency Proceedings Against Byju's
Background:
Byju's, India's largest ed-tech company, faced insolvency proceedings initiated by Glas Trust Company LLC, an American investment firm. NCLAT, the appellate tribunal for insolvency matters, had earlier stayed the proceedings and approved a settlement between Byju's and the Board of Control for Cricket in India (BCCI).
Major Turnaround:
In a significant development, the Supreme Court has overturned NCLAT's verdict, allowing Glas Trust Company LLC to proceed with the insolvency process against Byju's. The court cited NCLAT's failure to fully consider all aspects of the case as the reason for the reversal.
The decision marks a major setback for Byju's, which had secured a reprieve after NCLAT's ruling in its favor. The company had argued that the insolvency petition was premature and that it had already settled its obligations with the BCCI.
Reasons for the Supreme Court's Decision:
The Supreme Court stated that NCLAT had erred in closing the insolvency proceedings against Byju's without fully applying its mind to the following factors:
Implications for Byju's:
The Supreme Court's decision allows Glas Trust Company LLC to resume insolvency proceedings against Byju's. This raises the possibility of the company being placed under administration or liquidation if it fails to address its financial obligations.
Top 5 FAQs:
1. What is the significance of the Supreme Court's decision? A: It allows Glas Trust Company LLC to proceed with insolvency proceedings against Byju's, potentially putting the company's future in jeopardy.
2. Why did the Supreme Court overturn NCLAT's verdict? A: NCLAT was found to have failed to fully consider all aspects of the case before closing the insolvency proceedings.
3. What is the next step in the insolvency process? A: Glas Trust Company LLC will proceed with its petition, and Byju's will have the opportunity to defend its position.
4. Can Byju's still avoid insolvency? A: Yes, Byju's could potentially avoid insolvency if it is able to settle its obligations with Glas Trust Company LLC or successfully challenge the insolvency petition.
5. What impact will the insolvency proceedings have on Byju's operations? A: The insolvency process could result in the company being placed under administration or liquidation, which would disrupt its operations and potentially affect its employees and customers.
Zomato's board of directors has approved a plan to raise Rs 8,500 crore through equity shares, following its impressive Q2FY25 earnings report. Analysts have shown strong confidence in the food delivery company's future, with leading brokerages raising their price targets and recommending a "Buy" stance. While some have maintained a more conservative outlook, the overall sentiment points towards growing market confidence in Zomato's ability to thrive in the competitive food delivery landscape.
A recent survey revealed that a lack of recognition, rude managers, and outdated technology are the top demotivators for office staff. In response, Brother UK has launched the Fabulous Feedback Formula, a tool designed to help workers give tactful feedback in difficult situations. The research highlights the important role managers play in creating a positive work environment, making this tool a valuable resource for all levels of employees.
Union Bank of India and Zoho have collaborated to develop CRM Edge, a cutting-edge customer engagement platform that has revolutionized the bank's digital transformation journey. With its innovative features such as eKYC and automated workflows, the platform has significantly improved customer acquisition, retention, and satisfaction, aligning with the bank's growth plans. The successful partnership between the two organizations has set a new standard in the realm of digital banking.
The Minister of Communication, Shri Jyotiraditya M Scindia, unveiled the new logo of state-run telecom BSNL, which represents the company's mission to connect India securely, affordably, and reliably. Along with the new logo, BSNL also launched seven new initiatives, including automatic spam blocking, free wi-fi, and low-latency 5G, all designed to cater to the needs of the Indian population. This event marks BSNL's commitment to connecting every citizen of Bharat and empowering them with advanced communication services.
RediffGurus, a prestigious research center, has revealed that Harshil Agrotech Ltd. has shown remarkable progress in the past 15 days, according to the latest data from Rediff.com. This news has sparked excitement in the business world, with predictions of a promising future for the company. Investors and experts are keeping a close eye on Harshil Agrotech Ltd. as it continues to establish itself as a top player in the market, with a potential of great financial returns in the near future.
A meeting involving Air India and Vistara was held this Tuesday evening, with the Union Ministry of Electronics and Information Technology reprimanding social media platform X for circulating bomb threat hoaxes. The ministry also advised social media platforms to use AI-based mechanisms to block any accounts sending out bulk messages about bombs. Over the past eight days, more than 170 flights operated by Indian carriers have received bomb threats, prompting authorities to urge social media platforms to take immediate action.
In a session marked by selling pressure in financial, auto, and FMCG shares, the Nifty50 and Sensex closed lower, with the Sensex down 0.3% and Nifty50 down 0.1%. The market saw only brief moves above the flatline, with the Nifty50 moving within the 24,900-25,000 range. The top losers in the Nifty50 basket included M&M, ICICI Bank, Cipla, Adani Enterprises, and Maruti Suzuki, while top gainers included Trent, Hindalco, HCLTech, Tech Mahindra, ONGC, and JSW Steel. Despite the overall weak market trend, midcap and smallcap shares bucked the trend, with gains of 0.5% each in the Nifty Midcap and Nifty Smallcap indices. Keep up with the latest stock market updates and all other business news on Zeebiz.com.
Despite a much-anticipated IPO, Hyundai Motor India's shares debuted below the expected price, causing disappointment among investors. However, the company has announced plans to expand into the lucrative electric vehicle market in India and modernize its plant in Tamil Nadu with an investment of Rs 1,500 crores. This move comes as the company aims to establish itself as a leader in the Indian automobile industry and cater to the increasing demand for environmentally friendly vehicles.
Ahead of the much-anticipated listing of Hyundai Motor India, global brokerages have initiated their coverage on the stock. They believe the company's technology and style, along with favorable market conditions, will drive high-quality growth. With an outperform rating and target prices ranging from Rs 2,225 to Rs 2,472, the stock is expected to see a strong debut on the bourses. Additionally, market experts recommend keeping a close watch on Hyundai's parent capabilities and new model launches, which could further drive the company's market share and stock performance. Get all the latest stock market updates and expert opinions on Zeebiz.com.