Indian edtech firm Byju's on Wednesday informed the National Company Law Tribunal (NCLT) that it has referred its dispute with the Board of Control for Cricket in India (BCCI) over sponsorship rights for arbitration, as reported by PTI. According to the report, during the proceedings of the insolvency tribunal, counsel appearing for Think & Learn Pvt Ltd, which provides online educational services under the brand name Byju's, said that it is currently engaged in negotiations with the BCCI to settle the dispute amicably.
Earlier on November 28, 2023 admitting BCCI's plea, a two-member Bengaluru-based bench of the NCLT had issued notice to Think & Learn. The cricket board has filed a petition claiming dues of Rs 158 crore as an operational creditor under Section 9 of the Insolvency & Bankruptcy Code 2016.
The clounsel of the edtech firm also informed the tribunal that it had filed objections to the BCCI’s plea to initiate insolvency against Byju's. However, BCCI counsel sought some time to reply over the objection and arbitration application of Byju's.
The NCLT has now posted the matter to February 7, for further hearings. BCCI had filed the insolvency plea on September 8, and had issued notice on November 28, on the first hearing.
During the proceedings, BCCI's counsel on November 28, informed NCLT that a general notice was issued to Byju's through an e-mail dated January 6, 2023, with a default amount of Rs 158 crore, excluding TDS.
Byju's first came on board in 2019, when mobile manufacturer Oppo transferred the sponsorship rights to the online tutorial firm.
In November, Byju’s released it’s financial results for the 2021-22 fiscal year. In a statement, the company said that it logged an improvement in EBITDA loss which stood at Rs 2,253 crore in the reporting period, down by 6.36 per cent against Rs 2,406 crore loss posted in FY21.
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