Byju's has suffered a major setback as the Supreme Court has overturned the approval of a Rs 158 crore settlement between the edtech firm and the Board of Control for Cricket in India (BCCI).

The ruling, issued on October 23, found that procedural guidelines set forth in the Insolvency and Bankruptcy Code (IBC) were breached by the National Company Law Appellate Tribunal (NCLAT), resulting in the improper approval of the settlement.

Consequently, the Rs 158 crore previously deposited by BCCI in an escrow account will now be redirected to an escrow account overseen by the Committee of Creditors (CoC). This development puts a halt to the closure of insolvency proceedings against Byju's, raising concerns about the company's financial stability and ongoing negotiations with creditors.