The Board of Control for Cricket in India (BCCI) has filed a petition with the National Company Law Tribunal (NCLT), Bengaluru, to withdraw the bankruptcy case of electronic technology company Byju’s and has also sought an emergency hearing on the question.
In October, the Supreme Court had set aside the decision of the National Company Law Appellate Tribunal (NCLAT) which had approved a Rs 158 crore deal between education technology company Byju’s and the Board of Control for Cricket in India (BCCI).
It is for this reason that the crisis in the bankruptcy proceedings of Byju’s parent company Think and Learn Private Limited has resumed. In July, the National Company Law Tribunal (NCLT) had accepted the application for initiation of insolvency proceedings against the company under the Insolvency and Bankruptcy Code.
The agreement was signed between BYJU’S and BCCI on July 31
After this, on July 31, Byju’s-BCCI had reached an agreement, which was accepted by the National Company Law Appellate Tribunal (NCLAT). A sponsorship deal was signed between Think and Learn Private Limited and BCCI in 2019 for the Team India jersey. Under the agreement, Byju’s paid Rs 4.6 crore to the BCCI for each bilateral match.
SC had suspended the deal after opposition from creditors.
Earlier on August 14, dealing a major blow to Byjus, the Supreme Court had stayed the NCLAT order allowing the settlement and ordered to keep the settlement amount in a separate account.
The American company Glass Trust, which represents certain lenders of the company Byjus Group, filed an appeal with the Supreme Court on August 7. In this appeal, the court’s decision was challenged, in which Byju’s and BCCI were allowed to settle the payment issue.
NCLAT had approved Byjus-BCCI deal
On August 2, the National Company Law Appellate Tribunal (NCLAT) approved the deal between Byju’s parent company ‘Think and Learn’ and the Board of Control for Cricket in India (BCCI).
This agreement between the two parties was signed on July 31. The edtech startup has agreed to pay Rs 158 crore as dues under the sponsorship deal to the BCCI. Byju’s was to pay this amount on August 2 and 9.
Control of the company returned to Byju Raveendran. The NCLAT has stayed the July 16 order of the National Company Law Tribunal (NCLT), which had directed initiation of insolvency proceedings against the company. However, after this decision, the control of the company has now returned to Byju Raveendran.
After the NCLT order on July 16, control was taken away from Byju Raveendran and the board of directors of the company. According to the Insolvency and Bankruptcy Code (IBC) 2016, control of the company is taken over by the board of directors of the company against which bankruptcy proceedings are initiated.
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1. Supreme Court stay on Byju-BCCI deal: NCLAT had approved the settlement, the matter is related to Team India jersey sponsorship.
2. Byju Founder Said: “I am not a fraudster, I will make a comeback: Big investors are responsible for the disappearance of net worth, they are gone, so the situation has become worse.
3. There will be no agreement between Byju’s and BCCI: The Supreme Court sets aside the NCLAT order, due to which bankruptcy proceedings can be initiated against Byju’s.