The Bengaluru bench of the National Company Law Tribunal (NCLT) has recently admitted a petition filed by the Board of Control for Cricket in India (BCCI) seeking insolvency proceedings against edtech giant BYJU’S. This legal action, prompted by allegations of unpaid dues totaling approximately INR 158.9 crore, marks a significant development in the ongoing dispute between the two entities over sponsorship rights.
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- The NCLT Bengaluru bench has accepted BCCI’s petition to initiate insolvency proceedings against BYJU’S.
- The petition concerns unpaid dues of around INR 158.9 crore allegedly owed by BYJU’S to the BCCI.
- Pankaj Shrivastava has been appointed as the interim resolution professional by the tribunal.
- The NCLT has directed the issuance of a public notice to invite claims from all creditors.
- The tribunal found clear evidence of debt and default in the payment of debt.
- The dispute dates back to 2019 when BYJU’S took over the sponsorship of the Indian cricket team from OPPO.
- BYJU’S initially committed to sponsor the team until March 2022 but sought an extension.
- BYJU’S abruptly ended the sponsorship deal in December 2022, citing financial and regulatory issues.
- In January, BYJU’S lawyers argued that insolvency proceedings should not continue until arbitration decides the matter.
- The NCLT rejected BYJU’S objections, noting that BYJU’S continued to benefit from sponsorship rights and services until September 2023.
