Byju has amicably resolved its insolvency dispute with the France-based Teleperformance Business Services, as declared to the National Company Law Tribunal (NCLT) on June 26. The court subsequently instructed Teleperformance to submit a memorandum for withdrawing its insolvency plea, effectively bringing the legal contest to a close.
This resolution follows a series of directives from the NCLT, which had persistently urged Byju to reconcile with Teleperformance within a stipulated timeframe. The tribunal had warned that the case would proceed to judgment, failing a settlement based on its inherent merits.
The conflict was ignited when the NCLT notified Byju on February 7 regarding Teleperformance's insolvency petition. In mid-2022, Byju terminated contracts with various outsourcing agencies, including Teleperformance, Cogent E Services, and iEnergizer, as part of cost-cutting measures necessitated by financial pressures.
Teleperformance entered into a service agreement with Byju in April 2022, issuing over 20 invoices amounting to more than Rs 4 crore between March and August 2023. Byju acknowledged these outstanding invoices and committed to settling the dues in three instalments: an initial payment of Rs 1.5 crore, followed by Rs 2 crore, and a final tranche of Rs 2.2 crore, according to a report by The Financial Express.
Notwithstanding this settlement, Byju grapples with many legal challenges, with approximately ten similar cases pending from other creditors. The most substantial claim originates from the Board of Control for Cricket in India (BCCI), totalling Rs 158.91 crore. Additional claims include Rs 2.30 crore from Surfer Technologies, Rs 1 crore from OPPO Mobiles India, Rs 6.74 crore from Cogent E-services, Rs 1.75 crore from McGraw Hill Education India, and Rs 13.57 crore from I-energizer. The aggregate debt is estimated to be approximately Rs 189 crore.
This settlement marks a pivotal step for Byju as it endeavours to manage its financial and legal obligations, stabilize its operations, and address its outstanding debts.