SUMMARY
BYJU’s counsel informed the Bengaluru bench of the NCLT that the company was trying to resolve the dispute with Teleperformance
The NCLT adjourned the matter till April 30 and will hear both the parties if a settlement is not reached by then
Teleperformance Business Services India filed an insolvency petition against BYJU’S over pending dues of about INR 3-4 Cr
The National Company Law Tribunal (NCLT) on Thursday (April 18) granted embattled edtech major BYJU’S a week’s time to settle its payment dispute with French outsourcing firm Teleperformance Business Services.
As per a report by Bar and Bench, BYJU’S counsel informed the Bengaluru bench of the Tribunal that the startup was trying to resolve the dispute with the creditor. The counsel said that the company was confident of reaching a settlement with its French creditor and would subsequently submit its report to the Tribunal.
The NCLT adjourned the matter till April 30 and would hear both the parties if a settlement is not reached by then.
BYJU’S declined to comment on the development.
At the heart of the matter is the insolvency plea of Teleperformance Business Services India, the Indian arm of the French customer services company Teleperformance, against BYJU’S. The company alleged that the Byju Raveendran-led company failed to clear pending dues of about INR 3-4 Cr.
Teleperformance also alleged that the troubled startup abruptly terminated its contract without giving any notice.
Subsequently, the Tribunal issued a notice to BYJU’s in February.
While BYJU’s has been given a week’s time to settle this issue, the company’s overseas lenders are also on its trail. They also filed an insolvency plea against the company in January, seeking repayment of its $1.2 Bn Term Loan B. The lenders jointly account for 85% of the total loan.
The legal cases are part of a large number of issues plaguing the edtech startup. BYJU’S has been dousing fires on multiple fronts over the past year or so, including mounting losses, delay in filing financial statements, resignation of board members, battle with investors, funding crunch, and layoffs.
To add to the troubles, BYJU’S India CEO Arjun Mohan is quitting the startup, months after joining it. Following his exit, founder Byju Raveendran will take care of the day-to-day operations at India business.
Meanwhile, in a respite for the company, it said earlier this week that a majority of its shareholders voted in favour of increasing the company’s authorised share capital, clearing the way for its $200 Mn rights issue.
