Beleaguered edtech decacorn BYJU’S has reportedly moved an application to take its INR 158 Cr payment dispute with the Board of Control for Cricket in India (BCCI) for arbitration.
Lawyers representing BYJU’S contended before the National Company Law Tribunal (NCLT) that the Insolvency and Bankruptcy Code (IBC) proceedings against it cannot continue till the matter is decided by an arbitrator, Moneycontrol reported.
The development comes months after the BCCI took the troubled edtech giant to the NCLT in November 2023 over the dispute around the sponsorship rights of the Indian cricket team’s jerseys – a dispute which is ongoing for over a year now.
The BCCI claimed dues to the tune of INR 158 Cr from the edtech company as an operational creditor under section 9 of the Insolvency & Bankruptcy Code, 2016.
During a hearing on the matter last month, lawyers representing BYJU’S assured the tribunal that the company was in ‘good health’ and operating quite well. BYJU’S also told the NCLT that it had preliminary objections to the BCCI’s plea.
As per the latest report, the edtech major claimed before the NCLT that it is in talks with the BCCI to settle the payment dispute. However, the cricketing body denied that any such negotiations are underway.
The next hearing in the case is scheduled for February 7, where BCCI is expected to respond to BYJU’S objections and arbitration application.
The dispute between BYJU’S and BCCI dates back to 2019 when the edtech major assumed the sponsorship of the Indian cricket team from OPPO – a commitment that was supposed to last till March 2022.
At the end of this period, BYJU’S sought an extension of the sponsorship deal for another year. However, the edtech giant abruptly terminated the sponsorship deal with the BCCI around December 2022, citing financial and regulatory challenges.
The latest development also comes at a time when the edtech major is under the scanner for multiple corporate governance lapses. It is also entangled in legal troubles, with the biggest issue being its dispute with its lenders over the repayment of its $1.2 Bn Term Loan B.
Amid the ongoing problems, BlackRock once again slashed its valuation of BYJU’S this week by around 95% to $1 Bn from $22 Bn.
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