BCCI Approaches NCLT For Insolvency Proceedings Against Byju's Citing Rs.158 Crore Default

BCCI Approaches NCLT For Insolvency Proceedings Against Byju's Citing Rs.158 Crore Default

The matter will be heard on 22 December

The Board of Control for Cricket in India (BCCI) has approached the Bengaluru Bench of the National Company Law Tribunal (NCLT) to initiate corporate insolvency proceedings against ed-tech company, Byju's for allegedly defaulting on a payment.

In the BCCI vs. Think & Learn Pvt. Ltd case, the Coram of K Bishwal (Judicial Member) and Manoj Kumar Dubey (Technical Member) sought a response from Byju's in the matter.

The BCCI apprised the tribunal of sending a notice to Byju’s on 6 January over the payment default of Rs.158 crores, excluding TDS (tax deducted at source) amounts.

Thereafter, the NCLT issued a notice to the ed-tech company, directing it to file its reply within two weeks.

The dues cited by the BCCI were payable regarding a contract to sponsor the jerseys of the Indian cricket team.

The sponsorship contract was entered between the BCCI and Byju's in 2019 when it took over sponsoring the cricket team's jerseys from OPPO, the mobile phone manufacturer. The contract ended in 2022 but was later extended for a year.

Amid reports of financial issues, early this year, Byju's announced that it would not be renewing its sponsorship deal with the BCCI and other partnerships with the International Cricket Council (ICC) and the Fédération Internationale de Football Association (FIFA).

Meanwhile, it was reported that the ed-tech company was in talks with the BCCI to settle the insolvency case before the NCLT.

The BCCI filed the petition through Argus Partners.