India's
top court on Wednesday revived insolvency proceedings against Byju's by putting
a previous tribunal order on hold, in a victory for US lenders that say they
are owed $1 billion by the education technology company.
The
Supreme Court order is a setback to company founder Byju Raveendran who earlier
this month regained control of the startup that was once India's most valuable
at $22 billion.
Byju's
did not immediately respond to a request to comment on the court order.
The
company was undergoing insolvency proceedings following a complaint by India's
cricket control body which said it was not paid sponsorship dues. The two sides
subsequently settled the dispute and an appeals tribunal halted the insolvency
proceedings.
A
revival of the proceedings will put control of the company back in the hands of
a court-appointed insolvency administrator.
The
Supreme Court on Wednesday agreed to hear an appeal by US-based Glas Trust,
which represents some lenders of a Byju's group company, putting on hold the
earlier order that had quashed insolvency proceedings against Byju's.