The National Company Law Tribunal (NCLT) has been approached by the Board of Control for Cricket in India (BCCI) for initiating corporate insolvency proceedings against the EdTech company, Byju’s for allegedly defaulting on the payment of ₹158 crores.
The coram consisting of judicial member K Bishwal and technical member Manoj Kumar Dubey on November 28, had ask for response from Byju’s in the matter.
The NCLT was apprised that Byju’s was sent a notice on January 6 ,2023 over the payment of of ₹158 crores excluding TDS.
The tribunal proceeded to issue notice to Byju’s and asked the company to file its reply within two weeks.
The matter will be heard again on December 22.
As per the available the information the dues cited by BCCI were payable in respect of a contract to sponsor the jerseys of the Indian cricket team.
The BCCI and BYJu’s entered in to a sponsorship contract initially in 2019, when it took over sponsoring the cricket team’s jerseys from mobile phone manufacturer OPPO.
As per reports, this contract initially ended in 2022 but it was later extended for 2023.
In the beginning of this year, the reports indicated various other financial troubles for the EdTech company after which they announced about not renewing its sponsorship deal with BCCI,the International Cricket Council (ICC) as well as Fédération internationale de football association (FIFA).
More recently, it has been reported that Byju’s is in talks with the BCCI to settle the insolvency case before the NCLT.