The Karnataka High Court has rejected BYJU’S plea challenging the National Company Law Tribunal’s (NCLT) order regarding the Board of Control for Cricket in India’s (BCCI) insolvency case. BYJU’S, facing significant financial issues, had sought to overturn the insolvency ruling due to unpaid sponsorship dues. The court’s decision leaves the troubled edtech firm to seek relief from the National Company Law Appellate Tribunal (NCLAT).
BulletsIn
- Karnataka High Court has dismissed BYJU’S plea against the NCLT’s insolvency order.
- The insolvency petition involves BYJU’S parent company, Think and Learn Pvt Ltd.
- The NCLT admitted BYJU’S into insolvency on July 16 due to INR 158 crore in unpaid dues related to BCCI sponsorship rights.
- BYJU’S owes INR 158.9 crore to BCCI over a jersey sponsorship deal with the Indian cricket team.
- BYJU’S plans to appeal the court’s decision to the National Company Law Appellate Tribunal (NCLAT) on July 22.
- BYJU’S founder, Byju Raveendran, has expressed concerns that the insolvency proceedings might lead to mass resignations of employees.
- The dispute originated in 2019 when BYJU’S took over the Indian cricket team’s sponsorship from OPPO.
- The original sponsorship agreement was to last until March 2022, but BYJU’S sought an extension.
- In December 2022, BYJU’S exited the sponsorship deal abruptly, citing financial and regulatory challenges.
- BYJU’S contested BCCI’s claim, arguing that no services were rendered after the contract termination, but the NCLT found otherwise based on email communications.
