The National Company Law Tribunal (NCLT) has temporarily halted the insolvency bidding process for Byju’s parent company, Think & Learn Pvt. Ltd., until August 31, 2026, granting interim relief to the embattled edtech firm’s founders. The Bengaluru bench directed the resolution professional (RP) to pause the next phase of the Corporate Insolvency Resolution Process (CIRP), including the issuance of Form G, which invites expressions of interest from prospective buyers. The order came after founders Byju Raveendran and Riju Ravindran challenged the admission of a ₹11,433 crore claim filed by the representative of the company’s U.S. term loan lenders.
The founders argued that admitting the lenders’ claim without adequate scrutiny could significantly influence the insolvency process and impact the outcome of the bidding. Accepting that the issue required further examination, the tribunal ordered that the bidding process remain on hold until the next hearing, while clarifying that the insolvency proceedings themselves will continue.
NCLT Halts Insolvency Bidding Until August 31
The Bengaluru bench of the NCLT ordered the resolution professional to:
- Pause the issuance of Form G, the invitation for expressions of interest from potential bidders.
- Not finalize the list of prospective resolution applicants.
- Maintain the status quo until the next hearing scheduled for August 31, 2026.
Tribunal Order at a Glance
| Item | Details |
|---|---|
| Company | Think & Learn Pvt. Ltd. (Byju’s) |
| Tribunal | NCLT, Bengaluru Bench |
| Next Hearing | August 31, 2026 |
| Process Paused | Insolvency bidding (Form G and bidder selection) |
| Insolvency Proceedings | Continue; only bidding is paused |
Why the Founders Approached the Tribunal
Byju Raveendran and Riju Ravindran challenged the admission of a ₹11,433 crore claim submitted by the representative of the company’s U.S. term loan lenders.
According to the founders:
- The claim was admitted without sufficient scrutiny.
- Its inclusion could materially alter the creditor hierarchy.
- It could influence the valuation of the company and the outcome of the insolvency resolution process.
The tribunal agreed that the objections warranted detailed consideration before allowing the bidding process to move forward.
What the Order Means
The NCLT’s decision provides temporary relief to the founders but does not terminate or suspend the Corporate Insolvency Resolution Process.
Instead, the order:
- Delays the search for prospective buyers.
- Prevents the resolution professional from inviting bids.
- Gives the tribunal time to examine the disputed creditor claim.
- Leaves the broader insolvency proceedings in place.
Immediate Impact
| Stakeholder | Impact |
|---|---|
| Byju’s Founders | Temporary relief from bidding process |
| Resolution Professional | Cannot issue Form G or shortlist bidders |
| Potential Buyers | Must wait until further tribunal directions |
| Creditors | Resolution timeline delayed pending hearing |
Background to Byju’s Insolvency Case
Byju’s has been undergoing insolvency proceedings following mounting financial challenges, disputes with lenders, and legal battles across multiple jurisdictions.
The current dispute centers on the admission of claims from U.S. term loan lenders, whose debt forms a substantial portion of the company’s liabilities. The tribunal’s decision to pause the bidding reflects the significance of determining the validity and treatment of these claims before advancing to the next stage of the resolution process.
What Happens Next?
The NCLT will hear the matter again on August 31, 2026.
At the next hearing, the tribunal is expected to decide:
- Whether the disputed lender claim should remain admitted.
- Whether modifications to the creditor list are necessary.
- Whether the insolvency bidding process can resume.
The outcome will influence both the timeline and the structure of Byju’s corporate insolvency resolution process.
Looking Ahead
The NCLT’s decision to pause Byju’s insolvency bidding until August 31 provides the company’s founders with temporary breathing room while the tribunal examines the disputed ₹11,433 crore claim submitted by U.S. term loan lenders. By halting the issuance of Form G and the shortlisting of prospective bidders, the tribunal has delayed a crucial stage of the resolution process without suspending the insolvency proceedings themselves.
Looking ahead, the August 31 hearing could prove pivotal for Byju’s future. The tribunal’s ruling on the disputed creditor claim will shape the composition of the creditor pool, influence the valuation of the company, and determine when the search for new owners can resume. For lenders, founders, employees, and potential investors, the decision will mark another critical chapter in one of India’s most closely watched corporate insolvency cases.
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