दिवालिया कार्रवाई आगे बढ़ी तो बंद हो जाएगी बायजूस: CEO बायजू रवीन्द्रन ने कोर्ट फाइलिंग में यह बात कही, बोले- कारोबार पूरी तरह से ठप हो जाएगा

If bankruptcy proceedings begin against edtech company Byju’s, thousands of employees of the company will be forced to leave their jobs. Along with this, the company’s services will also be completely shut down. According to a Reuters report, Byju’s founder and CEO Byju Ravindran has said these things in the court filing.

3 days ago, the National Company Law Tribunal (NCLT) accepted BCCI’s petition to initiate bankruptcy proceedings against Byju’s. Now NCLT has started action in this matter. Byju’s assets have been seized and its board has been suspended. This matter is related to the sponsorship contract between Byju’s and BCCI for the Indian cricket team’s jersey.

Raveendran asked the court to cancel the bankruptcy proceedings
Byju Raveendran has filed an appeal in the court demanding cancellation of bankruptcy proceedings. The appeal states that due to this bankruptcy proceedings, the vendors who provide important services for the maintenance of the company’s online platform will be declared defaulters. This will completely shut down the company’s services and the business will come to a complete halt.

The court will hear the case on Monday
Ravindran’s lawyer has filed a 452-page appeal in the Karnataka High Court. However, these papers have not been made public yet. The court will hear the case on Monday (July 22). The documents state that Ravindran is ready to pay the outstanding amount to BCCI within 90 days. Byju’s currently has around 27,000 employees, including 16,000 teachers.

BCCI had filed a petition last year against Byju’s parent company Think and Learn Private Limited to recover dues of Rs 158 crore. The next hearing of the case is scheduled on November 15. However, it is reported that Byju’s is talking to BCCI to resolve the matter.

Byju’s did not pay BCCI Rs 158.9 crore for the contract
In January last year, Byju’s allowed BCCI to encash a bank guarantee of Rs 143 crore. Currently, the amount owed by Byju’s is Rs 158.9 crore. The case filed by BCCI on 8 September 2023 came up for hearing on 28 November.

NCLT said- Byju’s default is evident from email trail
While accepting the petition, the Bangalore bench of NCLT had said that it is clear from the email trail between BCCI and Byju’s that Think and Learn has defaulted. The bench has appointed Pankaj Srivastava as interim resolution professional. He will have to form a committee of creditors within 30 days from the date of appointment.

It defaulted for the first time on 21 August 2022
According to the information given in the order, Think and Learn defaulted on a total of 12 invoices sent by the BCCI after several international tours and series of the Indian cricket team. BCCI said that Byju’s first defaulted on August 21, 2022.

Creditors will get control of the company from the current management
According to the Insolvency and Bankruptcy Code (IBC), the control of the company will now be transferred from the current management to the creditors (whose money is due). At the same time, no assets of Byju’s can be transferred while the company is in the Corporate Insolvency Resolution Process (CIRP).

The company can appeal against the order in NCLAT
The company’s founder Byju Ravindran or any member of the board can appeal against this order in the National Company Law Appellate Tribunal (NCLAT) and then in the Supreme Court. It should also be noted that in the very first hearing, NCLT had issued a notice to Byju’s and sought a reply.

Investment firm Prosus lost Rs 4,115 crore investment
Recently, investment firm Prosus had written off its investment in Byju’s. That is, the investor had accepted that his investment of about Rs 4,115 crore in Byju’s was lost. He had a 9.6% stake in the edtech company. The investor had given this information in his annual report.