ETtech Explainer: What's next for Byju's after SC stays settlement deal with BCCI
Raveendran, the embattled founder of Byju's, appeared close to settling his company's payment dispute of Rs 158 crore with the Indian cricket board after approval by the National Company Law Appellate Tribunal (NCLAT).
However, on August 14, theSupreme Court intervened by staying the NCLAT order that had approved the settlement agreement between Think & Learn Pvt Ltd--Byju's parent company--and the Board of Control for Cricket in India (BCCI), adding to the woes of the troubled edtech firm.
On Thursday, the apex court rejected pleas by Byju's and BCCI to halt a meeting of the Committee of Creditors (CoC) in its ongoing insolvency case. The court will hear the matter next on August 27.
The BCCI case is among several legal disputes Byju’s is battling currently, part of a broader crisis that has severely impacted its operations and financial stability.
Byju’s vs BCCI dispute
On August 2, NCLAT’s Chennai bench approved Byju’s founders’ settlement of the Rs 158 crore payment owed to BCCI, helping the edtech firm avoid bankruptcy.
The issue stems from Byju’s ending its title sponsorship deal with BCCI. Byju’s had signed a jersey sponsorship deal in March 2019 for three years, later extended by another year. Payments were made until September 2022. However, the controversy centres around unpaid dues for the period from October 2022 to March 2023.
The cricket body, seeking to recover these outstanding payments, approached the National Company Law Tribunal (NCLT) to initiate bankruptcy proceedings against Byju’s.
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