Supreme Court Issues Notice in Byju's Insolvency Case, Maintains Status Quo Amid CoC Dispute

Byju's Committee of Creditors (CoC) Dispute Reaches Supreme Court

Key Figures:

• 99.41%: Voting share held by GLAS Trust Company LLC
• 24 February 2026: Date of NCLAT's judgement being challenged by the CoC

Background

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A complex legal battle is unfolding over the Committee of Creditors (CoC) of Byju's, a leading ed-tech company. The dispute centers around the National Company Law Appellate Tribunal (NCLAT) ruling that the CoC, though not a traditional juristic person, is competent to litigate its own name under the Insolvency and Bankruptcy Code (IBC).

The Controversy

The controversy arises from the ongoing corporate insolvency resolution process (CIRP) of Byju's, which was admitted under Section 9 of the IBC. In August 2024, the resolution professional constituted a four-member CoC, which was later reconstituted, excluding GLAS Trust Company LLC (holding 99.41% voting share) and Aditya Birla Capital Limited from the panel. Both creditors challenged their exclusion before the National Company Law Tribunal (NCLT) and succeeded in January 2025, securing their reinstatement to the CoC.

The CoC's Demand

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During these proceedings, the CoC sought to implead itself as a party, contending that the dispute directly impacted its composition and functioning. However, the NCLT rejected the impleadment plea, observing that the CoC did not possess the legal character and that the controversy concerned only the creditor whose membership was under challenge.

NCLAT's Ruling

The NCLAT delivered a major ruling on the legal character of the CoC, holding that it is a statutory creation and not a juristic person in the traditional sense. However, adopting a pragmatic approach, it allowed the CoC to litigate in its own name for disputes arising within the IBC framework.

Supreme Court Intervention

The 24 February 2026 judgement of the NCLAT's Chennai bench has now been challenged before the apex court by the CoC of Think & Learn Private Ltd, the parent company of Byju's. The Supreme Court has issued a notice and mandated a status quo in the dispute, meaning that the existing position regarding the CoC and the underlying proceedings will remain unchanged until the case is heard in detail.