Bankruptcy proceedings will begin against BYJU'S, NCLT gave order on BCCI's petition
Bankruptcy proceedings have begun against edtech company Byju's on the petition of the Board of Control for Cricket in India (BCCI). This order has been given by the National Company Law Tribunal (NCLT). The dispute between the two companies Byju's and BCCI is related to the sponsorship agreement. Byju's parent company Think and Learn Private Limited could not pay the outstanding amount of Rs 158.9 crore to BCCI.
Staff Editor 
The National Company Law Tribunal (NCLT) has accepted the petition of the Board of Control for Cricket in India (BCCI) to initiate bankruptcy proceedings against edtech company Byju's. This matter is related to the sponsorship agreement between Byju's and BCCI for the Indian cricket team jersey. BCCI had filed a petition against Byju's parent company Think and Learn Private Limited last year to recover the outstanding amount of Rs 158.9 crore. The next hearing of the case is to be held on November 15.
The tribunal has dissolved the current management of the company. Along with this, Pankaj Srivastava has been appointed as Interim Resolution Professional. Along with this, it has also asked the companies lending to Byju's to form a Committee of Creditors soon. On the other hand, to protect itself from bankruptcy proceedings, the company has appealed to settle the dispute with BCCI out of court.
The companies giving loans will get the responsibility
In a statement issued by NCLT, it has been said that the companies giving loans to Byju's have been asked to be included in the Committee of Creditors. However, despite this, the command of Byju's will remain in the hands of Pankaj Srivastava. Soon the bankruptcy proceedings will start against the company. Under this, the assets of the companies will be assessed. By selling these, the money of the companies giving loans will be paid.
The company will not be able to sell its assets till the bankruptcy process of NCLT is completed. According to the rules, now the management of the company will be handed over to the committee of creditors. In a statement issued by the company, it has been said that we are trying for an 'out of court' settlement with BCCI.
What is the dispute with BCCI?
On September 8 last year, BCCI had appealed to start the bankruptcy process against Byju's. BCCI said that Byju's has not been able to pay its Rs 158.9 crore. Accepting this appeal, NCLT has started the bankruptcy process against the company.
