NEW DELHI: National Company Law Tribunal on Tuesday admitted the BCCI‘s application seeking insolvency proceedings against Byju’s.
This came after the law tribunal said that “it cannot be disputed” that the parent of the ed tech firm, Think & Learn Private Limited, had availed the services of the cricket board and had defaulted on over 1.59 billion rupees ($19.02 million).
Byju’s has faced significant challenges in recent years, resulting in dwindling investor trust, extensive layoffs, and a steep drop in valuation to under $3 billion from a peak of $22 billion in 2022.
Last year, the cricket board had dragged Byju’s to NCLT for non-payment of Rs 160 crore sponsorship money after the expiry of contract.
“We are in discussions with the BCCI to settle the matter and we hope to achieve that soon,” a company spokesperson had then said.
The dispute revolves around a sponsorship contract that concluded in March 2022. Despite Byju’s desire to withdraw during a funding slowdown, BCCI, facing a sponsorship transition, convinced the company to extend its sponsorship temporarily until a new sponsor could be secured.
The ed tech firm extended the sponsorship till November 2022. The cricket board further persuaded the firm to extend sponsorship till March 2023.
This came after the law tribunal said that “it cannot be disputed” that the parent of the ed tech firm, Think & Learn Private Limited, had availed the services of the cricket board and had defaulted on over 1.59 billion rupees ($19.02 million).
Byju’s has faced significant challenges in recent years, resulting in dwindling investor trust, extensive layoffs, and a steep drop in valuation to under $3 billion from a peak of $22 billion in 2022.
Last year, the cricket board had dragged Byju’s to NCLT for non-payment of Rs 160 crore sponsorship money after the expiry of contract.
“We are in discussions with the BCCI to settle the matter and we hope to achieve that soon,” a company spokesperson had then said.
The dispute revolves around a sponsorship contract that concluded in March 2022. Despite Byju’s desire to withdraw during a funding slowdown, BCCI, facing a sponsorship transition, convinced the company to extend its sponsorship temporarily until a new sponsor could be secured.
The ed tech firm extended the sponsorship till November 2022. The cricket board further persuaded the firm to extend sponsorship till March 2023.
