BYJU'S vs BCCI: NCLT approves insolvency proceedings against edtech giant
The National Company Law Tribunal (NCLT) has admitted Think and Learn, the parent company of ed-tech firm BYJU'S, to the insolvency resolution process. This decision was made in response to a plea filed by the Board of Control for Cricket in India (BCCI). Pankaj Srivastava has been appointed as the interim resolution professional, responsible for running the company until a Committee of Creditors is formed.
BCCI's plea leads to BYJU'S insolvency resolution process
The NCLT found no reason to deny the BCCI's petition under section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, which sought to initiate a Corporate Insolvency Resolution Process (CIRP) against BYJU'S. The decision was based on established evidence of debt existence and payment default. Control of BYJU'S will now be transferred from its current management to its creditors. During this CIRP period, no assets can be transferred, and institution or continuation of any suits against BYJU'S is prohibited.
BYJU'S alleged unpaid dues over Indian cricket team sponsorship
The BCCI sought insolvency proceedings against BYJU'S over alleged unpaid dues of ₹158 crore under their sponsorship contract for the Indian cricket team. The case was initially filed by BCCI on September 8, 2023. BYJU'S had previously stated it was in talks with BCCI to settle the pending insolvency matter. The ed-tech firm had three key branding partnerships with BCCI, ICC, and FIFA, which were due for renewal in 2023 but were not processed.
