NCLT Seeks BYJU’S Response On Surfer Technologies’ Insolvency Plea

SUMMARY

The NCLT asked BYJU’S to file a response to the IT services firm’s plea in two weeks

Surfer Technologies argued that the edtech major owes it INR 2.3 Cr

Multiple organisations have filed insolvency pleas against BYJU’S, including the BCCI and French outsourcing firm Teleperformance

The National Company Law Tribunal (NCLT) reportedly issued a notice to BYJU’S on Tuesday (February 6) on an insolvency plea filed by digital marketing firm Surfer Technologies against the beleaguered edtech major.

As per a Moneycontrol report, the NCLT asked BYJU’S to file a response to the plea in two weeks.

The development comes days after the NCLT registered the plea on February 1, 2024. Sources told Inc42 then that Surfer offered IT-related services to BYJU’S customer care and sales teams in India.

During the hearing, Surfer reportedly argued that the edtech major owes it INR 2.3 Cr.

Surfer’s insolvency plea is in addition to the three other insolvency pleas filed against BYJU’S by cricket body BCCI, overseas lenders of its $1.2 Bn Term Loan B, and French outsourcing firm Teleperformance.

In December, the NCLT also issued a notice to BYJU’S in connection with a petition filed by the BCCI over the dispute regarding sponsorship rights of the Indian cricket team’s jerseys.

The new trouble for the Indian edtech major also comes at a time when BYJU’S major shareholders called for a rejig in the company’s board amid the ongoing legal and corporate governance issues.

Amid the multiple troubles, BYJU’S has temporarily suspended its three-year deal with footballer Lionel Messi, barely a year after a global brand ambassador contract was signed with him.

Last month, BYJU’S filed its financial statements for FY22. Its consolidated net loss surged 81% to INR 8,245.2 Cr in the fiscal year from INR 4,564.3 Cr in FY21. The company’s operating revenue jumped over 120% year-on-year to INR 5,014.6 Cr in FY22.