 "Byju's")
Lawyers representing beleaguered edtech firm Byju’s at the National Company Law Tribunal (NCLT) said that the company has filed an application to refer its dispute with the Board of Control for Cricket in India (BCCI) to an arbitrator. The firm claimed before the NCLT that it is in talks with the BCCI to settle the payment dispute.
However, the BCCI reportedly denied and told the tribunal that no negotiations were underway. The organisation said it only heard about Byju’s intent to settle the dispute via media reports. The matter will next be heard on February 7.
Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court.
On December 22, 2023, lawyers representing edtech firm Byju’s at the NCLT said 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 BCCI against the company. The BCCI has said Byju’s has defaulted on a payment of Rs 158 crore.
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.
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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.
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.
Early last 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.
