The legal battle between the Board of Control for Cricket in India (BCCI) and edtech giant Byju’s is nearing a crucial stage. The National Company Law Tribunal (NCLT) in Bengaluru has scheduled a hearing for March 20th, where an order on the BCCI’s insolvency petition against Byju’s is likely to be pronounced.
BCCI insolvency petition against Byju’s
In September 2023, the BCCI filed a petition with the NCLT against Byju’s parent company, Think & Learn Pvt Ltd, for failing to pay dues of nearly Rs 160 crore.
This dispute centers around the sponsorship rights for the Indian cricket team’s jerseys.
Byju’s seeks resolution
In November 2023, Byju’s has maintained that they are in negotiations with the BCCI to settle the matter amicably. However, the NCLT will now deliver its verdict after considering arguments from both parties as per CNBC TV18.
Sponsorship Deal and Payment Issues
Byju’s has been the official sponsor of the Indian cricket team jerseys since 2019.
In June 2023, the company extended the sponsorship until November of the same year.
The agreement reportedly involved a Rs 140 crore bank guarantee to be encashed, with the remaining Rs 160 crore payable in installments.
Byju’s Faces Additional Legal Challenges
The company is embroiled in another legal battle, with the Karnataka High Court scheduled to hear arguments on March 13th regarding a potential investor revolt. This case concerns the validity of resolutions passed during a meeting held by Think & Learn in February 2024.
Major investors, reportedly holding over 32% stake in the company, challenged Byju’s leadership and sought the removal of the founder and CEO, Byju Raveendran, and his family members from the board. Byju’s contested this move, and the court will decide on the future course of action.
Uncertain future for Byju’s
With two significant legal cases on the horizon, the coming weeks will be critical for Byju’s. The NCLT’s decision on the BCCI’s insolvency petition and the outcome of the investor revolt case in the Karnataka High Court will have a major impact on the company’s future.
