The Supreme Court on Wednesday questioned whether the Board of Control for Cricket in India (BCCI) can be allowed to strike a “personal agreement” with embattled edtech firm Byju’s promoter and “walk away” with its money.

Chief Justice of India (CJI) D.Y. Chandrachud posed the query during the hearing of an appeal filed by U.S.-based creditor Glas Trust Company LLC against a judgment of the National Company Law Appellate Tribunal (NCLAT) permitting Byju’s to pay a settlement amount of ₹158 crore to the BCCI.

“When the quantum of debt is so large… when there is a debt of ₹15,000 crore, how can any one creditor say ‘look, I will walk away with my money’... How can a private agreement be struck like that with just one creditor?” Chief Justice Chandrachud asked.

According to the BCCI, the NCLAT had allowed the settlement on the ground that the cricketing body was not accepting any tainted money. The cricketing body, represented by Solicitor General Tushar Mehta, had submitted that the ₹158 crore was offered by Riju Raveendran, Byju’s brother, from his personal assets. The money had been generated in India, for which income tax was paid, and received through banking channels.

At one point, the CJI asked “where did the ₹158 crore come from?”

Senior advocate A.M. Singhvi, appearing for Byju’s, said efforts had been made by Glas Trust, represented by senior advocates Shyam Divan and Kapil Sibal, to “grossly prejudice” Byju’s. Mr. Singhvi said the company had earned the trust of millions of students over the years and was the first of its kind.

A three-judge Bench headed by the CJI indicated that the NCLAT may not have applied its mind while closing the insolvency proceedings against Byju’s. The court hinted that it may return the dispute to the NCLAT for fresh adjudication.

The NCLAT, on August 2, granted relief to the edtech firm by setting aside the insolvency proceedings against it after approving its ₹158.9 crore settlement with the BCCI.

Byju’s had entered into a Team Sponsor Agreement with the BCCI in 2019. Under the agreement, the edtech firm got exclusive rights to display its brand on the Indian cricket team’s kit and some other benefits.