It’s been around five years, and the controversies surrounding Byju’s have only intensified. Since 2020, the Byju Raveendran-led edtech major face various challenges, including financial struggles, regulator and other internal issues. On Monday, the National Company Law Tribunal (NCLT) directed the resolution professional (RP) of Byju’s parent to submit the Indian cricket board’s application in the insolvency case.
The application seeks to withdraw its insolvency petition against the company to its committee of creditors (CoC). Before approaching the tribunal for withdrawing the insolvency petition, the company must obtain the approval of at least 90% of the CoC members, the NCLT said.
The CoC constitutes Glas Trust, Aditya Birla Finance, Incred Financial Services, and ICICI Bank as financial creditors in Byju’s-BCCI settlement case.
The decision comes after the National Company Law Appellate Tribunal (NCLAT) on February 7 instructed the NCLT to decide on BCCI’s plea within 10 days. The edtech major sought a settlement after a suspended management cleared the Rs 158 crore dues. Byju’s owed the amount under a sponsorship agreement with the BCCI.
Byju’s-BCCI Settlement
In 2019, Byju’s secured jersey sponsorship rights for the Indian cricket team. And the contract was extended till November 2023. However, the edtech failed to make payments due to financial struggles which prompted BCCI to initiate insolvency proceedings.
Later, both the parties tried to seek the court-approved settlement, but the NCLT did not issue an order regarding the case. Following this, Byju’s escalated the matter to the NCLAT in Chennai. In June 2024, the proceedings began regarding the company’s alleged Rs 158 crore payment to BCCI.
However, the NCLAT in August 2024, dismissed the insolvency case when Byju’s cofounder Riju Raveendran raised Rs 158 crore to clear the dues. The decision temporarily restored his family’s control over Byju’s operations.
The legal challenges for Byju’s didn’t end here. Glas Trust also challenged the settlement in the Supreme Court and argued that the funds should be allocated to financial creditors instead of BCCI. This prompted the apex court to quash the NCLAT order in October 2024, and directed both the parties to return to the NCLT for fresh proceedings.
