NCLT Issues Notice To BYJU'S In Fresh Insolvency Plea

NCLT Issues Notice To BYJU'S In Fresh Insolvency Plea

The BCCI, as an operational creditor, is seeking a recovery of more than Rs 1.5 billion.

FPJ Web DeskUpdated: Wednesday, February 28, 2024, 04:37 PM IST
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Indian Team wearing kits with erstwhile title sponsor, BYJU'S | File

The National Company Law Tribunal today issued notice to Think & Learn Pvt Ltd on a fresh insolvency petition filed against the parent company of Byju's. The petition was moved by US-based GLAS Trust Co LLC, which claimed itself to be an authorised agent of lenders who funded Byju's US arm, Alpha Inc. Think & Learn had acted as a guarantor to the loans, and the total outstanding dues, in the aftermath of the defaults, is more than 80 bln rupees, GLAS Trust submitted. Alpha Inc is currently undergoing voluntary bankruptcy in the US.

More trouble for BYJU'S

GLAS Trust's lawyer submitted today that when the lenders invoked the guarantee and asked Byju's to pay up the money, the company did not respond to the notices, despite being obliged to pay under the guarantee agreement. A bench of Judicial Member K. Biswal and Technical Member Manoj Dubey today said it will hear the case in April, and asked the parties to complete all filings by April 3. The same bench today also heard an earlier insolvency petition against Think & Learn initiated by the Board of Control for Cricket in India.

The BCCI, as an operational creditor, is seeking a recovery of more than Rs 1.5 billion. The tribunal today asked BCCI to file the judgements that it is relying upon to qualify as an operational creditor, and adjourned the case for further hearing till March 13. The cricket board's case pertains to the dispute around sponsorship rights of the Indian cricket team's jerseys. Byju's has been a partner of the Indian cricket team since 2019, with its branding featured on the front of the team's jersey.

BYJU'S terminates contract with BCCI

In March, Byju's terminated its contract with India's cricket board. It has been an eventful week for the online learning behemoth. On Friday, in an extraordinary general meeting, Byju's shareholders voted for the ouster of Byju Raveendran and his family from the company board.

However, the resolution could not be implemented as, two days earlier, on February 21, the Karnataka High Court had said that any decision by shareholders in the extraordinary general meeting shall not be given effect till March 13. On Tuesday, the company law tribunal heard a petition by shareholders who alleged oppression and mismanagement in the company, and reserved its order on imposing status quo on Byju's shareholding and assets. 

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