The National Company Law Appellate Tribunal (NCLAT) on Friday accepted the settlement between Byju Raveendran and the Board of Control for Cricket in India (BCCI), bringing Byju’s parent company Think and Learn out of the insolvency resolution process.

“Considering the undertaking given and the affidavit filed, the compromise is approved, the objection is allowed and the impugned order is set aside. However, with the caveat that in case there is a breach in the undertaking given, the bankruptcy order will be revived,” NCLAT said.

The appellate court held that considering that the settlement was reached before the Committee of Creditors (CoC) could be constituted and the source of money (for the settlement) was not in dispute, there was no reason to keep the company in the insolvency process.

The control of the company will now revert to Byju Raveendran as NCLAT has stayed the National Company Law Tribunal’s order admitting the company into insolvency resolution.

The appellate court has rejected a plea by US-based lenders claiming the deal was ‘tainted’. Byju Raveendran has agreed to pay BCCI Rs 158 crore, which he claims was from personal funds earned from the sale of Think and Learn shares between 2015 and 2022.

The Insolvency and Bankruptcy Code (IBC) provides that if a company is admitted to insolvency resolution, the control of the company will be transferred from the existing board of directors.

Think and Learn was admitted to insolvency resolution on July 16 and Pankaj Srivastava was appointed as interim resolution professional. NCLT rejected Byju’s arbitration petition citing a default payment of Rs 158 crore to BCCI.