The Bengaluru bench of the National Company Law Tribunal (NCLT) has issued a notice against ed-tech startup Byju’s on the petition of the Board of Control for Cricket in India (BCCI). BCCI had filed an insolvency petition against Byju’s in NCLT in September.
BCCI has filed an insolvency application in the National Company Law Tribunal (NCLT) in Bengaluru under Section 9 of the Insolvency and Bankruptcy Code, 2016. The case was officially registered on November 15 and the matter is scheduled to be heard on December 22.
Byju’s hopes to resolve the issue
Byju’s has accepted the legal proceedings and is trying to find a way out through negotiations with BCCI. A spokesperson of Byju has expressed hope that this matter will be resolved amicably.
In this case, the order issued by the Tribunal states that a notice was issued to Byju’s through email on January 6, 2023. It mentions default on the part of the edtech firm for an amount of Rs 158 crore (excluding TDS). (As shown in the challan attached to the case documents.)
Two weeks’ time to respond to the notice
BCCI’s counsel has been permitted to receive the notice and serve it to Byju’s along with a copy of the application and other necessary documents. At the same time, Byju’s has been given two weeks to file its reply, and if necessary, BCCI has been given an additional week to file its reply.
Let us tell you that Byju’s has been the main sponsor of the jersey (T-shirt) of the country’s national cricket team from 2019 to January 2023. This year Byju’s had decided to terminate the contract midway. The next hearing in this case will be on December 22.
