The National Company Law Tribunal (NCLT) in Bengaluru has admitted the Board of Control for Cricket in India’s (BCCI) plea to initiate insolvency proceedings against Byju’s, the ed-tech giant, over unpaid dues of Rs 158 crore. This amount is part of a sponsorship contract for the Indian cricket team’s jerseys.
Background of the Case
In September last year, BCCI filed an application with the NCLT against Think & Learn Pvt Ltd, the parent company of Byju’s, for defaulting on dues close to ₹160 crore. The dispute centers around the sponsorship rights of the Indian cricket team’s jerseys.
Current Status and NCLT Order
The case was officially registered by the bankruptcy tribunal on November 15 for further hearings. According to the NCLT order dated November 28, 2023, a general notice was issued to Byju’s via email on January 6, 2023, regarding the default amount of Rs 158 crore, excluding TDS (tax deducted at source)
Previous Sponsorships and Renewals
Byju’s had key branding partnerships with the BCCI, the International Cricket Council (ICC), and the Federation Internationale de Football Association (FIFA). However, none of these sponsorships were renewed in 2023.
Ministry of Corporate Affairs Inspection
In July 2023, the Ministry of Corporate Affairs (MCA) directed the office of the Regional Director in Hyderabad to inspect Think & Learn Pvt Ltd. In June, the MCA clarified that proceedings against BYJU’S under the Companies Act, 2013, were ongoing and no final conclusion should be drawn. Reports suggesting BYJU’S had been cleared of financial fraud were deemed “factually incorrect and misleading.”
Conclusion
As the case progresses, the focus remains on resolving the alleged unpaid dues between BCCI and Byju’s, with further hearings scheduled at the NCLT Bengaluru bench.