Lawyers representing beleaguered edtech giant BYJU’S at the National Company Law Tribunal (NCLT) on Friday (December 22) reportedly assured that the company is in ‘good health’ and operating quite well.
During the hearing of the insolvency plea filed by the Board of Control for Cricket in India (BCCI) against BYJU’S, the NCLT inquired about the company’s current status.
Responding to the query, one of BYJU’S lawyers informed the tribunal that despite negative media coverage creating an impression of the company’s poor performance, it is, in fact, in good shape, Moneycontrol reported.
Acknowledging the case as ‘high profile,’ the NCLT emphasised the need for a prompt resolution and adjourned the hearing to January 17.
BYJU’S conveyed to the NCLT that it holds preliminary objections to BCCI’s plea and has been granted time to submit its formal response.
Earlier, the NCLT issued a notice to the decacorn in connection with a petition filed by the BCCI. In an order issued on November 28, the Bengaluru bench of the insolvency tribunal admitted BCCI’s petition that pertains to a dispute over the sponsorship rights of the Indian cricket team’s jerseys.
The tribunal, comprising Member (Technical) K Biswal and Member (Technical) Manoj Kumar Dubey, directed the edtech major to furnish a reply in connection with the case within two weeks (December 12) of the issuance of the order. It also allowed the cricket board to file a rejoinder, if any, in the matter by December 19.
The crux of the issue revolves around the plea filed by the BCCI, saying that BYJU’S owes dues amounting to INR 158 Cr as an operational creditor under section 9 of the Insolvency & Bankruptcy Code, 2016.
The current dispute dates back to 2019 when BYJU’S assumed the sponsorship of the Indian cricket team from OPPO, a commitment slated to last until March 2022. BYJU’S took over the sponsorship rights midway through OPPO’s tenure, continuing for two-and-a-half years.
The edtech startup later expressed interest in extending the sponsorship deal for an additional year until the end of 2023, with a reported cumulative sum of $55 Mn. However, the agreement fell apart in December 2022, as the company abruptly terminated its jersey sponsorship deal with the BCCI, citing financial and regulatory challenges.
Subsequently, it came to light that the BCCI had filed a case against BYJU’S. In response, the startup stated that it was engaged in discussions with the cricket board and aimed to resolve the matter expeditiously. The ongoing legal proceedings now centre around the BCCI’s claim of outstanding dues amounting to INR 158 Cr from BYJU’S.
The edtech decacorn has been grappling with a slew of issues, including paucity of funds, mass layoffs, mounting losses, top-level leadership exits and full-blown confrontation with its lenders over the repayment of its $1.2 Bn Term Loan B.
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