The Board of Control for Cricket in India (BCCI) has filed a petition to withdraw the bankruptcy case against edtech firm Byju's and has also demanded an immediate hearing on it.
In October, the Supreme Court had overturned the decision of the National Company Law Appellate Tribunal (NCLAT) which had approved a Rs 158 crore agreement between ed-tech firm Byju's and the Board of Control for Cricket in India (BCCI).
Due to this, the crisis of bankruptcy proceedings on Byju's parent company Think and Learn Private Limited had started again. In July, the National Company Law Tribunal (NCLT) had accepted the petition for insolvency proceedings against the company under the Insolvency and Bankruptcy Code.
Agreement was signed between BYJU's and BCCI on 31 July
After this, on July 31, Byju's-BCCI reached an agreement, which was accepted by the National Company Law Appellate Tribunal (NCLAT). In 2019, a sponsorship contract was signed between Think and Learn Private Limited and BCCI for the jersey of Team India. Under the agreement, Byju's used to pay Rs 4.6 crore to BCCI for every bilateral match.
SC had put a stay on the agreement after opposition from creditors.
Earlier on August 14, in a blow to Byjus, the Supreme Court had stayed the NCLAT decision allowing the settlement and ordered to keep the settlement amount in a separate account.
US-based Glass Trust, representing some lenders of the Byjus Group company, had filed an appeal before the Supreme Court on August 7. In this appeal, the decision of the tribunal was challenged, in which Byju's and BCCI were allowed to settle the payment matter.
NCLAT had approved the Byjus-BCCI agreement
The National Company Law Appellate Tribunal (NCLAT) on August 2 had approved the agreement between Byju's parent company 'Think and Learn' and the Board of Control for Cricket in India i.e. BCCI.
This agreement between the two parties was signed on July 31. The edtech startup agreed to pay Rs 158 crore dues of sponsorship contract to BCCI. Byju's was to pay this amount on August 2 and August 9.
Control of the company again with Byju Ravindran NCLAT suspended the July 16 order of the National Company Law Tribunal (NCLT) to initiate insolvency proceedings against the company. However, after the decision, control of the company now returned to Byju Raveendran.
After the NCLT order of July 16, control was taken away from Byju Raveendran and the company's board. According to the Insolvency and Bankruptcy Code (IBC) 2016, the control of the company is taken over from the board of the company against which bankruptcy proceedings are initiated.
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related to BCCI and Byjus case…
1. Supreme Court's stay on Byju's-BCCI agreement: NCLAT had approved the settlement, the case is related to Team India's jersey sponsorship.
2. Byju's founder said – I am not a fraud, I will make a comeback: Big investors are responsible for the net worth becoming zero, they left, hence the situation worsened.
3. There will be no agreement between Byju's and BCCI: Supreme Court overturns the NCLAT order, due to which bankruptcy proceedings can be initiated against Byju's.
Graphics Source: VaskarAssets
