The appellate tribunal will likely hear BYJU’S petition on July 22
This comes days after the Bengaluru bench of the NCLT admitted BCCI's petition seeking insolvency proceedings against BYJU'S over alleged unpaid dues of about INR 158.9 Cr
Inc42 reported earlier that BYJU’S was looking to challenge the NCLT order
Troubled edtech giant BYJU’S
has reportedly moved the National Company Law Appellate Tribunal (NCLAT) challenging an order which directed initiation of insolvency proceedings against the firm.
The appellate tribunal will likely hear BYJU’S petition on July 22, Moneycontrol reported.
“The company remains solvent with thousands of employees. I am prepared to commit to depositing the entire INR 158 Cr in one installment within one month,” senior advocate Abhishek Manu Singhvi, representing BYJU’S, was quoted as saying by the publication.
This comes days after the Bengaluru bench of the National Company Law Tribunal (NCLT) admitted the Board of Control for Cricket in India’s petition seeking insolvency proceedings against the edtech giant over alleged unpaid dues of about INR 158.9 Cr.
Additionally, the NCLT appointed an interim resolution officer to oversee the company’s operations until a Committee of Creditors (COC) is formed.
Inc42 reported earlier that BYJU’S was looking to challenge the NCLT order.
In September last year, the BCCI dragged BYJU’S to the NCLT, seeking initiation of corporate insolvency resolution process against the edtech company under section 9 of Insolvency & Bankruptcy Code, 2016 over the dispute around the sponsorship rights of the Indian cricket teams’ jerseys.
At the time, the BCCI alleged that BYJU’S had not cleared a debt of around INR 158 Cr.
The dispute dates back to 2019 when BYJU’S assumed the sponsorship of the Indian cricket team from Chinese smartphone maker OPPO – a commitment that was supposed to last till March 2022.
At the end of this period, BYJU’S sought an extension of the sponsorship deal for another year. However, the edtech giant unceremoniously exited the sponsorship deal with the BCCI around December 2022, citing financial and regulatory challenges.
In January 2024, lawyers representing BYJU’S moved the NCLT against the BCCI’s plea seeking initiation of the insolvency resolution proceedings against the company and sought intervention of an arbitrator.
They contended that the BCCI did not render any service after the termination of the contract between the two parties, and therefore the BCCI’s claims of unpaid dues worth INR 158 Cr from BYJU’S cannot be considered as an operational credit, Inc42 reported earlier.
However, the NCLT in its July 16 order rejected BYJU’S objections to BCCI’s plea, saying that email communications between the two parties showed that the sponsorship arrangement and related services were still in force till September 15, 2023 and that BYJU’S continued to avail all rights of being a sponsor.
Further, the NCLT has set aside the insolvency plea filed by US-based lenders of BYJU’S and asked them to stake their claims to the interim resolution professional appointed for the company.
