Byju's To Appeal Insolvency Admission By NCLT
The move is just to stall the insolvency proceedings as this would give the company more time to pursue settlement with the BCCI, a person familiar with the matter said.
While Byju's has responded to the National Company Law Tribunal's insolvency admission order by stating its ongoing pursuit of an amicable resolution with BCCI, the edtech plans to appeal the NCLT's insolvency order, according to people familiar with the matter.
The plan is to approach the appellate authority against the NCLT order, the person said on the condition of anonymity. However, the move is just to stall the insolvency proceedings as this would give the company more time to pursue settlement with the BCCI, the person said.
Since the default on part of Byju's has already been found by the NCLT, the company is not expecting the NCLAT to rule any differently, the person said.
In a hearing on Tuesday, the Bengaluru bench of the NCLT admitted the edtech company into insolvency on the plea filed by the Board of Control for Cricket in India.
The dispute stems from a 'Team Sponsor Agreement' dated July 25, 2019, granting Byju's exclusive marketing rights, including sponsorship of Indian cricket teams and promotional activities.
Byju's extended its obligations under this agreement beyond March 31, 2023, using amended bank guarantees that prolonged the contract until Sept. 15, 2023. This extension was supported by renewed guarantees filed as recently as Sept. 16, 2022, demonstrating Byju's continuous commitment to the sponsorship arrangement.
