Indian Court Allows BCCI's To Initiate Insolvency Proceedings Against Defaulter Byjus
BCCI wins a big legal battle against former sponsors Byjus (X.com)
In a major development, the Board of Control for Cricket in India (BCCI) has initiated insolvency proceedings against Byju's, the prominent Indian ed-tech company. The move comes in the wake of financial disputes and unmet contractual obligations.
BCCI launched a legal action against former kit sponsors of the Indian cricket team, Byjus, a popular ed-tech giant that was once valued at $22 billion.
In September 2023, the apex governing body of Cricket India approached the National Company Law Tribunal (NCLT) court and filed an insolvency plea stating an outstanding defaulted payment of Rs 158 crore from the business company.
The NCLT issued a notice to Byjus in the first hearing of the case held last year. However, it was only until July 16, 2024 that the NCLT announced its verdict. The Tribunal court has accepted BCCI's plea to initiate insolvency proceedings against the Byju's ownership and current management.
The court accepted that it found no reasons to dismiss the cricket board's appeal as the "existence of a debt and a default in the payment of debt is clearly established."
Now, NCLT has appointed an independent interim resolution professional in Pankaj Srivastava who will take over the control of the company from the current management and resolve the dispute.
While Byju's owner, Raveendran or his partners can appeal against the NCLT orders in higher court, revoking the insolvency proceedings will be at the discretion of the court.
Notably, after several financial troubles and indifferences, Byjus decided not to renew its sponsorship deal with BCCI in 2023.
Immediately after, BCCI announced a new multi-year deal with Adidas. The German company will be sponsoring jerseys and kits for India’s Men’s, Women’s, and U-19 teams.
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