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The Board of Control for Cricket in India (BCCI) has taken Think & Learn, the parent company of edtech giant Byju’s, to the National Company Law Tribunal (NCLT).
The case was filed on September 8, but it was officially registered only on November 15. The case was scheduled for a hearing on November 28, according to the NCLT website. The NCLT website indicates that the case is set to be heard again on December 22.
“We are in discussions with BCCI to settle the matter, and we hope to achieve that soon,” a Byju’s spokesperson told Business Standard.
Law firm Argus Partners is advising BCCI in this matter. An email query to BCCI remained unanswered until press time.
The Morning Context reported the development first. The details of the case are not known yet, but the case is reportedly related to a dispute around the sponsorship of the Indian cricket team’s jerseys.
This new development comes months after beleaguered Byju's announced that it plans to end sponsorship of the Indian cricket team jersey, as it focuses on profitability. The cash-strapped company is going through a strategic restructuring and reorientation of its leadership team to enhance operational efficiency, cut down 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 the Chief Executive Officer (CEO) of its India business.
Early this year, Byju's had three large branding partnerships with BCCI, ICC (International Cricket Council), and FIFA (Federation Internationale de Football Association) that were up for renewal 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 new jersey sponsor after its deal with Byju’s ended abruptly.
The new case comes at a time when the company is currently facing a multitude of challenges, including securing fresh capital, delays in financial reporting, and legal disputes with lenders. The Enforcement Directorate (ED) recently also issued a showcause 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 investments from 2011 to 2023.
It is also locked in a dispute with lenders in the US over a missed interest payment on a $1.2 billion term loan B (TLB). Byju's has decided to put two of its key assets — Epic and Great Learning — on the block to generate $800 million-$1 billion in cash to address various financial challenges, according to sources.
