NCLT Accepts BCCI’s Plea To Admit Byju's To Insolvency Resolution

The tribunal noted that it couldn’t deny the petition filed by the BCCI as the authorities said that debt and a default in debt payment have been established

According to the IBC, the company will now have to transfer its control from the current management and hand it over to the firm’s creditors. (Image Source: Byju's)

Source : Byju's

The National Company Law Tribunal (NCLT) admitted the crisis-hit edtech start-up Byju’s parent entity, Think and Learn, to insolvency resolution process on July 16, 2024. The tribunal took the decision as a result of a plea submitted by the Board of Control for Cricket in India (BCCI).

The tribunal appointed Pankaj Srivastava as the interim resolution professional. The order stated, “The Interim Resolution Professional shall after collation of all the claims received against Think and Learn Pvt Ltd the Corporate Debtor and the determination of the financial position of the Corporate Debtor constitutes a Committee of Creditors,” reported Moneycontrol.

Srivastava will be in charge of the company till the lenders form the Committee of creditors. The tribunal also cast aside the request from the edtech firm to refer the dispute to arbitration.

The tribunal noted that it couldn’t deny the petition filed by the BCCI as the authorities said that debt and a default in debt payment have been established. The plea was filed under section 9 of the Insolvency and Bankruptcy Code (IBC), 2016 by the BCCI.

According to the IBC, the company will now have to transfer its control from the current management and hand it over to the firm’s creditors. No assets of the edtech firm will be allowed to be transferred while the company remains in the Corporate Insolvency Resolution Process (CIRP). The IBC also bars the entity of any suits or pursuing any other existing cases against the edtech firm.

The company now remains under moratorium. This means that all its debts and interests on the debts would be frozen till the NCLT passes an order to lift the same. The company will now be run by the COC via the IRP/RP for a maximum period of 330 days, if the committee succeeds in selling the firm to an interested party via a bidding process, the firm can be revived.

Now, Byju Raveendran or any of the board member of Byju’s can appeal against the decision in the tribunal and at the Supreme Court thereafter. The decision to lift the CIRP remains soley with the court.