In parallel, the Karnataka High Court has dismissed a petition filed by BYJU'S founder, Byju Raveendran, which aimed to suspend the insolvency proceedings.
BYJU'S is actively discussing with the Board of Control for Cricket in India (BCCI) to resolve a significant financial dispute and prevent impending insolvency proceedings. The BCCI has requested additional time to facilitate these settlement negotiations. Representing the BCCI, the Solicitor General has appealed to the National Company Law Appellate Tribunal (NCLAT) in Chennai to defer the hearing, as reported by The New Indian Express. Consequently, the hearing is now rescheduled for Wednesday.
In parallel, the Karnataka High Court has dismissed a petition filed by BYJU'S founder, Byju Raveendran, which aimed to suspend the insolvency proceedings. This development follows the July 16 decision by the National Company Law Tribunal (NCLT) in Bengaluru, which admitted an insolvency petition filed by the BCCI against BYJU'S concerning a debt of Rs 158 crore.
The financial dispute traces back to a team sponsorship agreement signed in 2019 between BYJU'S and the BCCI. In 2022, BYJU'S made a full payment on only one invoice for the 2022-2023 period and failed to settle the remaining invoices for that financial year.
Reports also indicate that the legal representatives of BYJU'S US-based lenders are seeking to challenge the NCLT's decision to dismiss their insolvency plea, given that the BCCI's petition has already been admitted.
The outcome of these settlement talks and the forthcoming hearing will be crucial for BYJU'S as it navigates this complex financial situation with one of India's foremost sports governing bodies.