New Delhi5 minutes ago
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Byju Ravindran, founder of Byju’s.
Edtech company Byju’s will no longer face bankruptcy proceedings. The National Company Law Appellate Tribunal (NCLAT) on Friday approved the agreement between Byju Ravindran and the Board of Control for Cricket in India (BCCI).
The agreement between the two parties was reached on July 31. The edtech startup has agreed to pay BCCI the outstanding amount of Rs 158 crore for the sponsorship contract. Byju’s has to pay this amount today (Friday, August 2) and on August 9.
The control of the company is again with Byju Ravindran
With the acceptance of the settlement by NCLAT, the control of the company will now return to Byju Ravindran. NCLAT has suspended the July 16 order of the National Company Law Tribunal (NCLT), which asked to initiate bankruptcy proceedings against the company.
Petition of American lenders rejected
The agreement between BCCI and Byju’s was opposed by the American lenders who had given loans to Think and Learn. On Wednesday, they appealed to NCLAT not to accept this agreement.
However, NCLT found that this agreement between the two parties was made in front of the Committee of Creditors (CoC) i.e. those who have invested in the company. Also, the source of the amount to be given under the agreement is also appropriate.
US based lenders had raised questions on the agreement…
- Lenders had asked NCLAT not to accept the settlement.
- His lawyer Mukul Rohatgi had called it a ‘tainted agreement’.
- Rohatgi had said that the payment was being made from ‘stolen money’.
- Byju and Riju conspire and steal $500 million.
- The lenders had said that this is our money, which these people have withdrawn.
NCLAT said- action will be taken on violation of the agreement
Accepting the settlement, NCLAT said, “On the basis of the undertaking and affidavit given by both the parties, the settlement is approved and the order (insolvency proceedings) is cancelled. However, in case of violation of the terms of the settlement, insolvency proceedings will be initiated.”
The sponsorship contract was signed in 2019
Byju Ravindran’s brother Riju gave Rs 50 crore to BCCI immediately after the agreement. Riju is one of the largest shareholders of the company. Byju’s parent company Think and Learn Private Limited and BCCI had a sponsorship contract for Team India’s jersey in 2019.
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Byju’s agrees to pay Rs 158 crore to BCCI: The company will make the payment in installments on August 2 and 9; One year old dispute ends
Edtech company Byju’s has agreed to pay the outstanding sponsorship contract amount of Rs 158 crore to BCCI. The lawyers of the company’s founder Byju Ravindran informed this to the National Company Law Appellate Tribunal (NCLAT) on 31 July.
Click here to read the full news…
Bankruptcy proceedings to begin against Byju’s: NCLT accepts BCCI’s plea, the company did not pay ₹158 crores for Team India’s sponsorship
The National Company Law Tribunal (NCLT) has accepted BCCI’s plea to initiate insolvency proceedings against edtech company Byju’s. The case is related to the sponsorship contract between Byju’s and BCCI for the Indian cricket team’s jersey. Click here to read the full news…
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