Bengaluru, India – The corporate insolvency resolution process (CIRP) for embattled edtech giant Byju's is approaching a critical juncture, with the deadline for resolution plan submissions extended to June 30, 2026. A central question persists: can founder Byju Raveendran still significantly shape the future of the company he built, despite recent legal setbacks and a diminishing formal role?
Raveendran's position has been further complicated by a Singapore court sentencing him to six months in jail for contempt, citing his failure to comply with orders for asset disclosure. In response, Raveendran stated his focus remains on "resolution over confrontation," indicating ongoing settlement discussions with lenders, which he described as being at an advanced stage.
Creditors Now Hold the Reins
Under India's Insolvency and Bankruptcy Code (IBC), once insolvency proceedings are admitted, management control vests with the Resolution Professional (RP). This means Byju Raveendran no longer holds any formal decision-making power within the company. Legal experts emphasize that the insolvency framework is designed to be promoter-independent, shifting the balance of power firmly to the RP and the Committee of Creditors (CoC).
Jayesh H, Co-founder of Juris Corp, a law firm specializing in insolvency cases, notes that influencing the process is increasingly difficult for Raveendran, especially after the Supreme Court dismissed his appeal challenging the restoration of the CoC. "Given the recent dismissal of his appeal by the Supreme Court challenging restoration of the Committee of Creditors (CoC), influencing the process would be difficult," Jayesh stated.
Settlement Efforts and Creditor Prerogatives
While Raveendran continues to pursue a settlement, such a move under Section 12A of the IBC requires the approval of creditors holding at least 90% voting share in the CoC. Siddharth Chandrashekhar, a Bombay High Court lawyer, clarifies that such a settlement is not a promoter's right but a "creditor's prerogative."
Previous attempts by Raveendran to settle claims have met with resistance from key lenders, including GLAS and Aditya Birla Finance. Although insolvency proceedings have occasionally seen parallel negotiations influence outcomes, the formal control and decision-making authority now predominantly rest with the creditors.
Diminishing Asset Value and Limited Buyers
Adding to the challenges, the perceived value of Byju's assets has shifted. Aakash Educational Services, once considered the crown jewel of the group, has become less central following the dilution of Byju's stake after a rights issue. "Aakash was the real prize, but that may no longer be the case," Jayesh remarked, indicating limited interest from potential buyers.
As the June 30 deadline for resolution plans approaches, Byju Raveendran may still attempt to influence the narrative around potential settlements. However, within the formal insolvency process, the creditors and the Resolution Professional increasingly hold the decisive edge, charting the company's future trajectory.