Lawyers say Byju's in good health, BCCI's plea to be heard on Jan 17

Byju's gave this response when the NCLT inquired about the company's current status during the hearing of the insolvency plea filed by BCCI against the company

Lawyers representing edtech firm Byju’s at the National Company Law Tribunal (NCLT) said on December 22 the firm was in good health and it was functioning well.

Byju’s gave this response when the NCLT enquired about the company’s status during the hearing of the insolvency plea filed by the Board of Control for Cricket in India (BCCI) against the company.

The BCCI has said Byju’s has defaulted on a payment of Rs 158 crore.

One of the company’s lawyers told the NCLT there was a lot of negative publicity surrounding the firm, making it appear that the organisation was not doing well.

The NCLT Bench in Bengaluru classified the dispute as a “high-profile” matter and said it should be heard at the earliest possible date. It has adjourned the hearing of the case till January 17.

Byju’s requested more time to provide a comprehensive response to the BCCI’s plea.

The BCCI has also dismissed Byju’s’ optimistic outlook on the company’s financial standing.

The case was filed by the BCCI on September 8 and it came up for hearing on November 28. The company had been asked to file its reply within two weeks.

The matter was then slated to be heard on December 22.

The BCCI approached the NCLT to initiate corporate insolvency proceedings against the edtech company. The case is called BCCI v. M/s. Think & Learn Pvt. Ltd.

The petition was filed under Section 9 of the Insolvency and Bankruptcy Code 2016.

“It is stated that the General notice was issued to Byju’s vide email dated 06.01.2023 and the default amount of Rs 158 crore, excluding TDS (tax deducted at source) as reflected in the invoices attached,” said the order of November 28.

This new issue comes months after Byju’s had announced it planned to end the sponsorship of the Indian cricket team jersey as it focused on profitability. The cash-strapped company is going through strategic restructuring and reorientation of its leadership team to enhance operational efficiency, cut losses, and achieve profitability.

Byju’s has decided to lay off around 4,000 employees, or over 11 per cent of its total workforce, over the next few weeks as part of a restructuring exercise, according to sources.

The restructuring exercise is being undertaken by Arjun Mohan, who was recently elevated as chief executive officer of its India business.

Early this year, Byju’s had three large branding partnerships with the BCCI, International Cricket Council, and Federation Internationale de Football Association. They were to be renewed in 2023. But the company had said it would not renew any of them.

In June, gaming firm Dream11 replaced Byju’s as the jersey sponsor of Team India in a deal that has cost the company Rs 358 crore. This came shortly after the BCCI had announced it was looking for a jersey sponsor after its deal with Byju’s ended abruptly.

Byju’s is facing challenges such as securing fresh capital, delays in financial reporting, and legal disputes with lenders.

The Enforcement Directorate recently issued a show-cause notice of Rs 9,362 crore to Think & Learn, the company behind Byju’s education platform, and its founder Byju Raveendran for alleged violations of foreign exchange rules while attracting foreign investment from 2011 to 2023.