The Supreme Court on Friday stayed a Kerala High Court order requiring Ernst & Young India Chairman Rajiv Memani and Think & Learn Pvt Ltd (Byju’s) Resolution Professional Shailendra Ajmera to personally appear before the High Court in a contempt case concerning the attempted sale of Byju’s foreign subsidiaries Epic! Creations Inc. and Tangible Play Inc [Sunil Thomas Vs Voizzit Technology].
A Bench of Justices PS Narasimha and Atul S Chandurkar asked how a contempt of court case could survive when the injunction said to be violated was in force only from May 21 to May 27, before being varied by the Supreme Court itself.
“Six days it existed between 21st and 27th. It was set aside on the 27th. Where is the question of contempt then?” the Bench observed, noting that only breaches within that said period could form the basis of proceedings.
The hearing before the apex court unfolded against the backdrop of the Supreme Court’s May 27 order in which a Bench of Justices Vikram Nath and Sanjay Kumar had set aside the Kerala High Court’s injunction restraining US Chapter 11 Trustee Claudia Springer from selling Epic's assets.
The top court had said that the High Court order was passed without hearing Springer and required reconsideration.
Chapter 11 bankruptcy is a legal process under US law that allows a business or individual to restructure their debts while continuing operations.
Unlike Chapter 7, which involves liquidation, Chapter 11 enables the debtor to remain in control as a "debtor-in-possession" and propose a reorganisation plan to repay creditors over time.
The High Court had earlier restrained Springer from alienating assets of Epic until the Ernakulam Commercial Court decided an injunction plea filed by Voizzit in an ongoing commercial suit.
Springer challenged this order before the Supreme Court, arguing that it violated principles of natural justice, judicial comity and exceeded the High Court’s supervisory jurisdiction under Article 227.
Springer was appointed as Chapter 11 Trustee for Epic, Tangible Play Inc., and Neuron Fuel Inc. by the Delaware Bankruptcy Court.
The US court had issued multiple restraining and contempt orders against Voizzit and its managing director Rajendran Vellapalath for attempting to assert ownership over the assets through parallel Indian proceedings in violation of the automatic stay under US law.
The Delaware court had also approved the sale of Epic's assets to Hy Ruby Limited on May 20 — one day before the Kerala High Court order. Springer submitted that the High Court’s intervention rendered the US court’s orders unenforceable in practice and prejudiced the ongoing restructuring process.
Voizzit later moved a contempt petition before in Kerala High Court over alleged violations of the orders passed in May 2025, which had led to the summoning of the above mentioned persons.
This led to the present appeal before the top court which stayed the High Court direction today.
The petitioners were represented by Senior Advocates Jayant Mehta, C Aryama Sundaram, Rajiv Shakdher, Dhruv Mehta and Madhavi Deewan, who were assisted by advocates Shyam D Nandan , Prateek Khanna, Nandana Menon, Pranjul Jain, Rohit Bohra, Suvan Jain, Prateek Kumar, Raveena Rai, Siddhant Grover, Abbhi Udai Singh, Pooja Mahajan, Arveena Sharma, Ichchha Kalash, Samridhi Shrimali, Sparsh Jain, Arjun Pall and Avinash B Amarnath from Khaitan & Co and Chandhiok & Mahajan.
The respondents were represented by Senior Advocate Navin Pahwa assisted by advocates Kuriakose Varghese, V Shyamohan, Sradhaxna Mudrika, Anshika Bajpai, Vrinda Baheti, Vrinda Goel, Anirud C and Rohan Thawani, instructed by advocate Aswathi MK and KMNP Law.