SUMMARY
The NCLT’s Bengaluru bench has given BYJU’S two-week’s time to file its response to Teleperformance Business Services’ insolvency plea
Earlier this week, the NCLT issued a notice to BYJU’S on an insolvency plea filed by digital marketing firm Surfer Technologies
Inc42 earlier reported that Teleperformance’s insolvency plea pertains to pending dues which the beleaguered edtech giant failed to clear and termination of contract without prior notice
The Bengaluru bench of the National Company Law Tribunal (NCLT) on Wednesday (February 7) issued a notice to troubled edtech giant BYJU’S on an insolvency plea filed by French outsourcing firm Teleperformance Business Services, sources told Inc42.
The Tribunal’s Bengaluru bench gave BYJU’S two-week’s time to file its response to Teleperformance’s plea, the sources added.
The next hearing in the case is scheduled on March 11, 2024. Teleperformance was represented by its lawyers Sukrit Kapoor and Aviral Tripathi.
BYJU’S declined to comment on the development.
This is the second notice issued by NCLT to the Byju Raveendran-led firm this week. On February 6, the NCLT issued a notice to BYJU’S on an insolvency plea filed by digital marketing firm Surfer Technologies.
Inc42 earlier reported that BYJU’S failed to clear the pending dues of Teleperformance for various services that the latter provided to the edtech giant. Sources said that BYJU’S terminated the vendor contract with Teleperformance without giving prior notice.
“There were pending dues of nearly INR 3-4 Crore that BYJU’S was supposed to pay to Teleperformance and it hasn’t cleared the same,” a source said then.
“BYJU’S was supposed to provide a three-month notice for any business ramp down. However, they unexpectedly initiated the ramp down without adhering to this agreement. This action not only violated the contractual terms but also had financial implications as BYJU’S failed to clear an outstanding invoice of approximately INR 3-4 Cr owed to Teleperformance,” according to the sources.
Teleperformace was working closely with BYJU’S India for various customer service functions and sales operations. It also helped the edtech major onboard new students for courses.
The development adds to the growing number of insolvency cases being faced by BYJU’S. The Board of Control for Cricket in India (BCCI) has already dragged the edtech company to the NCLT over a payment dispute of INR 158 Cr.
Last week, BYJU’S overseas lenders for its $1.2 Bn Term Loan B also filed an insolvency case against the company with the Bengaluru bench of the NCLT.
Meanwhile, sources said that BYJU’S founder Raveendran is still negotiating with the US-based lenders to resolve its Term Loan B issue.
The edtech giant has been fighting on multiple fronts over the last year or so. It has been plagued by various issues, including a severe cash crunch, layoffs, legal tussle with lenders, write-offs of subsidiary companies, and growing losses.
As per sources, Raveendran explored multiple ways to raise funds externally and also via a SPAC deal but failed to do so.
Last month, the company filed its financial statements for FY22 after a long delay. Its consolidated net loss surged 81% to INR 8,245.2 Cr during the year under review from INR 4,564.3 Cr in FY21.
