BYJU’S ALPHA, INC. V. CAMSHAFT CAPITAL

Summarized by Michael Myers , Ballard Spahr LLP
2 days 3 hours ago

Case Type:

Business

Case Status:

Affirmed

Citation:

25-1828 (3rd Circuit, Jun 12,2026) Not Published

Tag(s):

Ruling:

The Third Circuit Court of Appeal affirmed the district court, which had affirmed the bankruptcy court's ruling holding certain entities that were parties to the bankruptcy and a non-party individual in contempt. The court held that there was no jurisdiction over the entities because the contempt order was interlocutory as to them, and that the order was upheld as to the individual on the merits.

Procedural context:

The entities and individual appealed first to the district court and then to the Third Circuit.

Facts:

BYJU’s Alpha, Inc. (Alpha), a special purpose vehicle and subsidiary of Indian conglomerate Think and Learn Private Limited, along with its related entities, defaulted on a $1.2 billion loan. A few weeks later, Alpha’s sole director, Riju Ravindran, initiated a series of monetary transfers totaling over $533 million to the Camshaft Fund in exchange for an ownership interest. The assets were later transferred to Inspilearn LLC, another subsidiary of Think and Learn. After Alpha defaulted on the loan, the lenders exercised contractual rights to take control of that entity and oust Ravindran. Alpha, under new management, soon learned about the allegedly fraudulent transfers. It then filed for Chapter 11 protection and initiated this adversary proceeding against the Camshaft Entities to recover the $533 million in the Bankruptcy Court for the District of Delaware. At the heart of the bankruptcy proceedings was “[t]he location and control of the $533 million.” The Bankruptcy Court doubted the legitimacy of the Camshaft Fund for at least two reasons. First, the address it provided to the U.S. Securities and Exchange Commission was an International House of Pancakes in Miami. Second, “[t]he evidence suggest[ed] that Mr. Morton” was “Camshaft’s sole employee." The Camshaft Entities and Morton failed to comply with the bankruptcy court's discovery orders, including failing to respond to expedited interrogatories and failing to appear at hearings.

Judge(s):

HARDIMAN, BOVE, and FISHER

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