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In its order dated November 28, the bench issued notice to Byjus and sought its response to the application seeking to initiate the Corporate Insolvency Resolution Process against it under the IBC 2016
The Board of Control of Cricket in India (BCCI) has filed a petition under Section 9 of the Insolvency and Bankruptcy Code 2016 against ed tech giant Byju's, which has claimed to have defaulted on payment of Rs. 158 crores.
The Section 9 application was heard by a bench of NCLT Bangalore comprising Judicial Member K. Biswal and Technical Member Manoj Kumar Dubey.
In its order dated November 28, the bench issued notice to Byjus and sought its response to the application seeking to initiate the Corporate Insolvency Resolution Process against it under the IBC 2016.
The NCLT was informed by the counsel appearing for the BCCI that a general notice was issued to Byju's via email dated 06.01.2023 regarding the default amount of Rs. 158 crores, excluding TDS.
The dispute between the BCCI and Byju's pertains to the sponsorship contract for providing jerseys to the Indian Cricket Team.
Reportedly, the said dispute revolves around a Rs. 160 crore sponsorship contract scheduled to end in November 2023. However, the cricket board insisted on continuing the contract until March 2024 to facilitate the board in securing a new sponsor on board from the new financial year.
Following the financial trouble the company is facing, it decided not to renew any of its sponsorship contracts with BCCI, International Cricket Council (ICC) or (Fédération Internationale de football association) FIFA.
As per reports, the ed tech giant has said that it was in talks with BCCI to settle the insolvency issue.
The NCLT has sought a response from Byjus within 2 weeks and will now hear the matter on December 22.
Case title: BCCI vs Think Learn Pvt Ltd
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