Winning Bizness Desk

Mumbai. The Board of Control for Cricket in India (BCCI) has filed a request in the National Company Law Tribunal (NCLT) in Bengaluru to withdraw its bankruptcy case against edtech company BYJs. BCCI is seeking an urgent hearing in the matter. In October, the Supreme Court overturned a previous decision by the National Company Law Appellate Tribunal (NCLAT) that approved a Rs 158 crore settlement between BCCI and Byju’s. The ruling revived insolvency proceedings against Byju’s parent company, Think & Learn Private Limited. The NCLT had initially accepted the bankruptcy case in July under the Insolvency and Bankruptcy Code (IBC).

Byju’s and BCCI Reached an Agreement on July 31

On July 31, Byju’s and BCCI reached a settlement to resolve their financial dispute, which NCLAT approved. In 2019, Byju’s signed a sponsorship contract with BCCI, becoming the jersey sponsor for the Indian cricket team. Under the agreement, Byju’s was to pay BCCI Rs 4.6 crore for each bilateral match.

Supreme Court Suspends the Settlement Following Objections from Creditors

On August 14, the Supreme Court put a hold on the NCLAT-approved settlement and ordered that the settlement amount be placed in a separate account. This decision came after Glass Trust, a U.S.-based organization representing some of Byju’s creditors, filed an appeal on August 7. Glass Trust argued that the settlement approval should be overturned, expressing concerns on behalf of Byju’s lenders.

NCLAT’s Initial Approval of the Settlement

NCLAT had previously approved the settlement between Byju’s and BCCI on August 2, where Byju’s agreed to pay the pending sponsorship dues of Rs158 crore to BCCI. The company was scheduled to make these payments on August 2 and August 9. Following NCLAT’s approval of the settlement, control of Byju’s was returned to its founder, Byju Raveendran. Earlier, a July 16 NCLT order had temporarily removed Raveendran and the company’s board from managing the company due to the insolvency case. According to the IBC, when bankruptcy proceedings are initiated, control of a company is generally transferred from its board to a resolution professional.

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BCCI’s Current Petition

With the Supreme Court’s recent ruling invalidating the settlement, BCCI has filed a new petition in NCLT, seeking to officially withdraw the bankruptcy case and requesting a swift hearing. The case now awaits further developments, with both parties looking for a conclusive resolution to their long-standing financial dispute.