Byju’s Moves NCLAT Chennai Against NCLT Insolvency Order
On July 16, the National Company Law Tribunal (NCLT) Bengaluru admitted an insolvency plea filed by the Board of Control for Cricket in India (BCCI) against Byju’s parent company, Think and Learn, over unpaid dues amounting to ₹158 crore related to sponsorship rights. In response, edtech giant Byju’s has approached the National Company Law Appellate Tribunal (NCLAT) in Chennai, seeking to challenge this order.
Senior Advocate Pramod Nair of MZM Legal, representing Think and Learn, urgently mentioned the case before a bench comprising Judicial Member Sharad Kumar Sharma and Technical Member Jatindranath Swain on Tuesday. Nair emphasized the need for an expedited hearing, citing the necessity of paying salaries to thousands of employees.
The NCLAT bench initially questioned why Byju’s had first approached the Karnataka High Court and then withdrawn its petition to move to the Appellate Tribunal. However, considering the urgency highlighted by Nair, the bench agreed to list the matter for a hearing on July 29.
The financial dispute stems from a sponsorship agreement between BCCI and Byju’s. The contract, initially signed in 2019, had Byju’s sponsoring the Indian cricket team’s jerseys, a role previously held by mobile phone manufacturer OPPO. While this contract was set to end in 2022, it was extended into 2023. However, in January 2023, amid various financial challenges, Byju’s announced it would not renew its sponsorship deals with BCCI, the International Cricket Council (ICC), and the Fédération Internationale de Football Association (FIFA).
Subsequently, BCCI filed a plea to initiate the corporate insolvency resolution process (CIRP) against Byju’s. The NCLT Bengaluru, upon admitting BCCI’s plea, triggered the CIRP under the Insolvency and Bankruptcy Code (IBC) for Think and Learn and appointed a resolution professional to manage the company’s affairs in the interim.
In the ongoing legal proceedings, Senior Advocate PH Arvindh Pandian, briefed by Khaitan and Co, represents the financial creditor GLAS Trust Company LLC, while Advocate Ashwini Vaidialingam, briefed by Argus Partners, appears for BCCI.
(With inputs from agency)
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