Delhi, 29 May (H.S.): The Supreme Court of India annulled a Kerala High Court order that barred Claudia Springer, a US Chapter 11 Trustee, from selling intellectual property assets tied to Epic! Creations and Tangible Play, two US ed-tech companies previously acquired by Byju’s Group (Think & Learn Private Limited). Justices Vikram Nath and Sanjay Kumar determined that the High Court issued its order without providing Springer an opportunity for a hearing, necessitating the case's return to the High Court for reconsideration.

The impugned order indicated that the respondents were not heard, a point acknowledged by the respondents' counsel. Chapter 11, a US legal process, allows a business or individual to reorganize debts while continuing operations, distinguishing it from Chapter 7, which involves liquidation.

The Kerala High Court initially prohibited Springer from selling Epic!’s assets pending a decision on an injunction filed by Voizzit, involved in an ongoing commercial suit. Springer contested this order in the Supreme Court, claiming it disregarded natural justice and exceeded the High Court’s jurisdiction.

Appointed by the Delaware Bankruptcy Court, Springer pointed out that the US court had previously issued multiple restraining orders against Voizzit for attempting to assert rights over the assets in violation of US law. The Delaware court had authorized the sale of Epic!’s assets to Hy Ruby Limited on May 20, just prior to the High Court's restriction.

Springer argued that the High Court's decision undermined the US court's authority and interfered with the restructuring process, emphasizing that Voizzit misled the Kerala High Court by concealing relevant US court orders.

---------------

Hindusthan Samachar / Jun Sarkar