The Board of Control for Cricket in India (BCCI) has initiated legal action against ed tech giant Byju’s, filing a petition under Section 9 of the Insolvency and Bankruptcy Code 2016, claiming a default on payment of Rs. 158 crores. The National Company Law Tribunal (NCLT) in Bangalore, comprising members K. Biswal and Manoj Kumar Dubey, issued a notice to Byju’s, seeking its response to the application for Corporate Insolvency Resolution Process under the IBC 2016. The dispute arises from a Rs. 160 crore sponsorship contract for Indian Cricket Team jerseys, scheduled to conclude in November 2023. Despite Byju’s decision not to renew sponsorship contracts, BCCI insisted on extending until March 2024.
BCCI’s counsel informed NCLT that Byju’s was notified via email on 06.01.2023 regarding the default amount. Byju’s reportedly faces financial challenges, leading to the non-renewal of contracts with BCCI, ICC, and FIFA. The company has expressed intentions to settle the insolvency matter through discussions with BCCI. The NCLT has given Byju’s two weeks to respond, scheduling the next hearing for December 22.
In summary, BCCI’s legal action against Byju’s revolves around a sponsorship dispute, triggering insolvency proceedings under Section 9 of the IBC 2016. The NCLT has issued a notice, and Byju’s has two weeks to respond, with the matter set for further hearing on December 22.
