NCLT Allows BCCI’s Insolvency Plea Against Think & Learn

NCLT Allows BCCI’s Insolvency Plea Against Think & Learn

The company defaulted in paying the outstanding amount

The Bengaluru bench of the National Company Law Tribunal (NCLT) has admitted an insolvency plea filed by the Board of Control for Cricket in India (BCCI) against Think & Learn Pvt Ltd, the parent company of ed-tech firm Byju's, over a Rs.158 crore debt.

The Coram of K Biswal (Judicial Member) and Manoj Kumar Dubey (Technical Member) admitted the BCCI's plea and appointed Pankaj Srivastava as an Interim Resolution Professional (IRP).

On 23 September 2023, the BCCI filed a plea under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Think & Learn for a default of Rs.1,58,90,92,400 outstanding payment.

The NCLT admitted the plea and declared a moratorium under Section 14 of the IBC. It dismissed Byju’s plea seeking arbitration.

The tribunal held that it was evident as ruled by the Supreme Court in the Indus Biotech Pvt. Ltd vs Kotak India Venture (Offshore) Fund & Ors (2021) case. The adjudicating authority (AA) had to either reject or admit the application. A third option could not be recommended.

The IRP would have to function under Sections 15,17,18,19,20,21 of the IBC. The fees payable to the IRP would have to comply with the IBBI (Liquidation Process) Regulations or circulars and directions.

The IRP must file his written consent within one week from the date of admission.