After a plea filed by the Board of Control for Cricket in India (BCCI) over unpaid dues related to sponsorship rights, India’s edtech firm Byju’s parent company, Think and Learn Pvt Ltd, will challenge the insolvency proceedings against it in an attempt to block the process this week, two sources said on Wednesday.
The National Company Law Tribunal in Bengaluru on Tuesday ordered insolvency proceedings against the company, as the startup once valued at $22 billion tries to tide over the crisis, after a complaint by the BCCI for not paying $19 million (Rs 158 crore) in dues last September. A court-appointed professional is currently running the company.
Byju’s has suffered numerous setbacks in recent years, including boardroom exits and a tussle with investors who accused CEO Byju Raveendran of corporate governance lapses, job cuts and a collapse in its valuation to less than $2 billion. Byju’s has denied any wrongdoing.
An appeal will be filed in the companies law appeals tribunal this week, the sources said. Settlement talks are ongoing with the Indian cricket board but the company wants to block the insolvency process, said one of the sources.
Byju’s did not immediately respond to a request for comment.
BCCI counsel, previously in November last year, had informed the tribunal that a notice was issued to the firm on January 6, 2023, with the default amount excluding the tax deducted at source (TDS).
The cricket board was in jersey sponsorship agreement with the Byju’s in March 2019 till September 2022. The dispute concerns unpaid amounts from October 2022 to March 2023.
The company has previously said it wishes to “reach an amicable settlement” with the Indian cricket board despite the insolvency proceedings.
(Inputs from Reuters)
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