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The National Company Law Appellate Tribunal (NCLAT) will hear today a petition to initiate insolvency proceedings against edtech startup Byju’s. The case is related to the sponsorship contract between Byju’s and BCCI for the Indian cricket team jersey.
BCCI had filed a petition last year against Byju’s parent company Think and Learn Pvt Ltd to recover dues of Rs 158 crore.
NCLT accepted the petition on 16 July
In the case, on July 16, 2024, the National Company Law Tribunal (NCLT) accepted the petition to initiate bankruptcy proceedings against Byju’s. Against this, the company’s founder Byju Ravindran had filed a petition in NCLAT.
BCCI said- it is in talks with the founder of the company
In this case, lawyers of both the parties appeared in NCLAT yesterday (30 July). Solicitor General Tushar Mehta, on behalf of BCCI, told NCLAT that it is in talks with the founder of the company to settle its dispute with Think and Learn Private Limited.
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
The Bengaluru bench of NCLT, while accepting the petition, 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).
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.
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Prosus’ stake in Byju’s becomes zero: Investment firm admits Rs 4,115 crore investment was lost, says company’s future is in doubt
Investment firm Prosus has written off its investment in financially troubled edtech company Byju’s. That is, the investor has accepted that his investment of $493 million (about Rs 4,115 crore) in Byju’s has gone down the drain. He had a 9.6% stake in the edtech company.
The investor has given this information in its annual report. A spokesperson for Prosus said that it does not have sufficient information about Byju’s financial position, liabilities and future outlook. Earlier on May 21, financial firm HSBC had reduced Byju’s valuation to zero, citing serious doubts on its future.
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Byju’s will be shut down if bankruptcy proceedings proceed: CEO Byju Ravindran said this in court filing, said- the business will come to a complete standstill
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.
Click here to read the full news…
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