Byju’s crisis: Byju Raveendran-led edtech firm said it believes an amicable settlement can be reached with Board of Control for Cricket in India (BCCI) that had filed a petition seeking insolvency proceedings against the firm over unpaid dues. The National Company Law Tribunal’s (NCLT’s) Bengaluru bench, on Tuesday, admitted BCCI’s plea against Byju’s.
"As we have always maintained, we wish to reach an amicable settlement with BCCI and we are confident that, despite this order, a settlement can be reached. In the meantime, our lawyers are reviewing the order and will take necessary steps to protect the Company’s interests," a spokesperson for Byju's said.
BCCI had filed the plea last year in October over unpaid dues of Rs 158 crore. Byju’s had a sponsorship contract with BCCI for the Indian cricket team. On November 15 last year, the matter was reserved for further hearing.
Admitting the plea, NCLT said that it cannot be disputed that Byju’s parent Think & Learn Private Limited had availed the services of the BCCI and defaulted on the payment.
As the insolvency resolution petition has been admitted, the tribunal appointed an interim resolution professional, Pankaj Srivastava, who will now oversee the management of Byju’s. The powers of the board of the company will now be suspended and will rest on the resolution professional.
Apart from BCCI, Byju’s also had International Cricket Council (ICC) and Federation Internationale de Football Association (FIFA), which were up for renewal in 2023 but were never processed.
(With Reuters inputs)