Mumbai: The National Company Law Tribunal has admitted an insolvency petition against online tutor Byju’s by the Board of Control for Cricket In India for allegedly defaulting on dues worth ₹158 crore.
The case pertains to a dispute over sponsorship rights to the Indian cricket team’s jerseys.
BCCI had filed an application before the Bengaluru bench of NCLT against Byju’s parent company, Think and Learn Pvt. Ltd, in September. Two months later the tribunal agreed to hear the matter on merits.
Tuesday’s decision admitting BCCI’s insolvency petition is the first order in the matter. A detailed order is awaited.
“We are in discussions with Board of Control for Cricket in India to settle the matter and we hope to achieve that soon,” a spokesperson for Byju’s said without divulging more details.
The case pertains to three key branding partnerships with BCCI, the International Cricket Council (ICC) and the Federation Internationale de Football Association (FIFA), which were up for renewal in 2023 but not processed.
Byju’s had been a partner of the Indian cricket team since 2019, with its branding featured on the front of the team’s jersey. In June last year, Byju’s extended its sponsorship rights with the BCCI till November.
The ed-tech firm had asked the cricket board to encash a ₹140 crore bank guarantee, with the remaining ₹160 crore to be paid in instalments.
In November, Byju’s hinted at possible talks on a settlement between the two. However, the company has been facing a severe financial crisis and is unable to repay debts owed to its creditors.
BCCI had filed a section 9 application under the Insolvency and Bankruptcy Code, 2016, which allows an operational creditor to initiate an insolvency case against a corporate debtor for default in payment of dues.
Byju’s creditor Surfer Technologies settles insolvency case
Byju’s had some respite on the legal front on Monday when Surfer Technologies informed NCLT that it had reached a settlement with the edtech company. Following this, Surfer Technologies is expected to withdraw its insolvency case against Byju’s.
NCLT is also hearing another case filed by Byju’s investors MIH Edtech and General Atlantic alleging oppression and mismanagement by the company