Byju’s appeals NCLT’s recent insolvency order to NCLAT

Crisis-hit Byju’s has filed an appeal with the National Company Law Appellate Tribunal (NCLAT) against the recent order from the National Company Law Tribunal (NCLT) allowing the Board of Control for Cricket in India’s (BCCI) petition to initiate insolvency proceedings against Byju's parent company, Think and Learn. This move comes after Byju’s failed to pay dues of Rs 158.9 crore.

Sources indicate that Byju’s is seeking an urgent hearing on the matter. However, the company has not commented publicly on the issue.

The NCLT’s Bengaluru bench had admitted BCCI's plea, appointing Pankaj Srivastava as the interim resolution professional. Byju’s founder and CEO, Byju Raveendran, will report to the resolution professional.

Despite the insolvency proceedings, Byju's had expressed hope for an amicable settlement with BCCI. According to media reports spokesperson stated, “We wish to reach an amicable settlement with BCCI and are confident that, despite this order, a settlement can be reached. Our lawyers are reviewing the order and will take necessary steps to protect the company’s interests.”

Once valued at USD 22 billion, Byju’s faced a decline following the reopening of schools post-pandemic, and a recent valuation by BlackRock reduced its worth to USD 1 billion. The company’s troubles began with missed financial reporting deadlines and revenue shortfalls. In February, major investors voted to remove Raveendran as CEO, citing mismanagement, which he has denied.

The NCLT invited creditors, employees, and vendors to file claims against Byju's. At the heart of the dispute is the 'Team Sponsor Agreement' between BCCI and Byju's, which granted Byju's exclusive rights to display its brand on the Indian cricket team’s kit and place advertisements during cricket broadcasts. However, Byju's failed to pay the agreed fees, leading to BCCI’s insolvency petition.

Byju’s made only partial payments and failed to cover the entire sponsorship fee despite acknowledging the dues.

Also read: RD Deshpande, ex-Byju’s, now President at PR Professionals