BYJU’S Legal Battle: Edtech Titan Asserts ‘Good Health’ Amidst BCCI Insolvency Plea

In a recent hearing at the National Company Law Tribunal (NCLT), BYJU’S legal representatives assured the tribunal of the edtech giant’s robust health and operational efficacy, countering the negative portrayal in the media. The legal proceedings stem from an insolvency plea filed by the Board of Control for Cricket in India (BCCI) against BYJU’S concerning sponsorship rights.

Key Highlights:

1. Legal Defense: Lawyers representing BYJU’S appeared before the NCLT, asserting that despite media scrutiny implying financial strain, the edtech major is in good health and functioning well.
2. High-Profile Case: Acknowledging the high-profile nature of the case, the NCLT stressed the importance of a swift resolution. The tribunal adjourned the hearing to January 17, expecting BYJU’S to provide a comprehensive response.
3. Preliminary Objections: BYJU’S conveyed its preliminary objections to BCCI’s plea and was granted additional time to submit a formal response to the insolvency petition.
4. BCCI’s Allegations: The insolvency petition was filed by the BCCI, asserting that BYJU’S owes dues of INR 158 Crore as an operational creditor under section 9 of the Insolvency & Bankruptcy Code, 2016. The matter revolves around a sponsorship dispute over the Indian cricket team’s jerseys.
5. Sponsorship Fallout: The dispute originated in 2019 when BYJU’S took over the sponsorship rights of the Indian cricket team. The agreement, set to last until March 2022, was abruptly terminated in December 2022, citing financial and regulatory challenges. The BCCI claims outstanding dues from BYJU’S.

Legal Timeline:

• The NCLT issued a notice to BYJU’S on November 28 following BCCI’s petition.
• The tribunal directed BYJU’S to respond within two weeks, setting the deadline for December 12.
• BCCI had the option to file a rejoinder by December 19.
• The case’s next hearing is scheduled for January 17, 2024.

The legal proceedings underscore the challenges faced by BYJU’S, including financial constraints, workforce layoffs, leadership departures, and disputes with lenders over a $1.2 billion Term Loan B.