BCCI (Board of Control for Cricket in India) has filed a petition in the National Company Law Tribunal (NCLT) Bengaluru to withdraw the bankruptcy case against edtech firm Byju’s.
In October, the Supreme Court overturned the decision of the NCLAT, which approved the Rs 158 crore settlement between ed-tech firm Byju’s and BCCI.
This had revived the crisis of bankruptcy proceedings against Byju’s parent company Think and Learn Private Limited. In July, NCLT accepted the petition to initiate bankruptcy proceedings against the company under the Insolvency and Bankruptcy Code.
Byju’s and BCCI signed an agreement on 31 July.
After this, on July 31, the National Company Law Appellate Tribunal (NCLAT) accepted the agreement reached by Byju’s-BCCI. Think and Learn Private Limited and BCCI had a sponsorship contract for Team India’s jersey in 2019. Under the agreement, Byju’s used to pay Rs 4.6 crore to BCCI for every bilateral match.
SC had stayed the deal after creditors protested
Earlier on August 14, the Supreme Court gave a setback to Byju’s by putting a stay on the NCLAT’s decision allowing the settlement and ordered to keep the settlement amount in a separate account.
US-based Glass Trust, representing some lenders of the Byju’s Group company, had filed an appeal before the Supreme Court on August 7. In this appeal, the tribunal’s decision was challenged by the parties, allowing Byju’s and BCCI to settle the payment matter.
NCLAT had approved the Byju’s-BCCI agreement
On August 2, the NCLAT approved the agreement between Byju’s parent company ‘Think and Learn’ and BCCI.
This agreement was reached between the two parties on July 31. The edtech startup agreed to pay BCCI the outstanding sponsorship contract amount of Rs 158 crore. Byju’s had to pay this amount on August 2 and August 9.
The control of the company is again with Byju Ravindran
NCLAT suspended the July 16 order of the National Company Law Tribunal (NCLT), which ordered the initiation of bankruptcy proceedings against the company. However, after the decision, the control of the company has now returned to Byju Ravindran.
After the NCLT order on July 16, Byju Ravindran and the company’s board lost control. According to the Insolvency and Bankruptcy Code (IBC) 2016, bankruptcy proceedings initiate control loss of the company by the board.
