Byju Raveendran has secured a significant legal breather in the United States after a bankruptcy court in Delaware overturned its earlier order directing him to pay more than $1 billion in damages. The ruling marks a temporary respite for the embattled ed-tech founder, who is fighting multiple international disputes linked to the collapse of Byju’s and a contentious $1.2 billion term loan raised in 2021.
In a statement on Wednesday, the founders of Think & Learn Pvt Ltd, the parent company of Byju’s, said the Delaware court had accepted fresh submissions filed through a motion to correct its November 20 judgment. “The court agreed that damages had not been determined and ordered a new phase to commence in early January 2026 to determine any damages related to claims against Byju Raveendran,” the statement noted.
The earlier default ruling had accused Raveendran of failing to cooperate with efforts to trace nearly half of the proceeds from the 2021 loan. Creditors, led by GLAS Trust, had also alleged that Raveendran, his co-founder wife Divya Gokulnath and long-time executive Anita Kishore had “masterminded the theft” of $533 million from the loan funds. The founders have consistently denied the allegations as “baseless and untrue,” claiming the entire amount was reinvested into Think & Learn to finance acquisitions worth $3 billion that year.
Raveendran had argued that the November order was procedurally flawed because the court did not grant him the 30 days he had sought to appoint a US attorney. He pledged to challenge the ruling, and Wednesday’s reversal opens the door for a full damages hearing instead of a summary judgment against him.
Raveendran is preparing to file a separate $2.5 billion lawsuit against GLAS Trust before year-end, alleging malpractice and deliberate misrepresentation. His team said they would present “clinching evidence” to US and Indian courts to show that the disputed $533 million was fully invested in Think & Learn in accordance with Indian regulations, and not diverted for personal use.
The court will resume hearings in January, setting up another high-stakes chapter in one of India’s most closely watched corporate legal battles.