BYJU’S Insolvency: Founders Blame Suspended IRP For Delay In Submitting BCCI’s Application

SUMMARY

The company said that if the submissions were made on time, BYJU’S could have emerged from insolvency by now

The comment was made during a hearing at the NCLAT Chennai bench, regarding the NCLT Bengaluru bench blocking the withdrawal of insolvency plea

It is pertinent to note that the NCLT, in January this year, removed the then BYJU’S IRP Srivastava

In yet another twist in BYJU’S insolvency proceedings, the edtech giant’s founders have reportedly accused the former interim resolution professional (IRP) Pankaj Srivastava of delaying the submission of the Board of Control for Cricket in India’s (BCCI) settlement application.

If the submissions were made on time, BYJU’S could have emerged from insolvency by now, the counsel for the cofounders reportedly said during a hearing at the National Company Law Appellate Tribunal’s (NCLAT) Chennai bench, Business Standard reported.

The bench was hearing an appeal filed by BYJU’S director Riju Raveendran against the decision of the Bengaluru bench of the National Company Law Tribunal (NCLT) to block the withdrawal of insolvency plea.

It is pertinent to note that the NCLT, in January this year, removed the then BYJU’S IRP Srivastava. The Tribunal also initiated disciplinary proceedings against him and set aside his decision to exclude Glas Trust and Aditya Birla Finance from the edtech company committee of creditors (CoC).

In his appeal, Riju accused Glas Trust of pressurising the then IRP to constitute a new committee of creditors (CoC), which allegedly delayed the process of submitting BCCI’s withdrawal application within the required three days.

The case began back in 2023, when the BCCI filed a petition against the edtech company for not paying INR 158 Cr dues pertaining to the sponsorship of the Indian cricket team. In July 2024, the NCLT’s Bengaluru bench admitted the BCCI’s insolvency plea against BYJU’S.

However, the two parties reached a settlement in August 2024, when Riju paid the cricket board INR 158 Cr.

However, BYJU’S investors and lenders approached the authorities to get their dues back. The edtech firm owes Glas Trust, which is a consortium of its US-based lenders, over $1 Bn.

Since then, there have been numerous back and forth in insolvency proceedings. From allegations on the IRP by founder Byju Raveendran and its investors to the founders taking shots at Glas Trust, the future of the company, once valued at $22 Bn, hangs in the balance.