The National Company Law Tribunal (NCLT) admitted embattled ed-tech company Byju’s parent company ‘Think and Learn Pvt Limited’ to insolvency resolution process in a plea filed by the Board of Control for Cricket in India (BCCI).
“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, constitute a Committee of Creditors,” the order said.
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Further, the tribunal appointed Pankaj Srivastava as the interim resolution professional, in charge of running the company till the lenders form a committee known as the Committee of Creditors(CoC).
In its order, the NCLT opined that there is no reason to deny the petition filed by the BCCI under section 9 of the Insolvency and Bankruptcy Code (IBC), 2016 to initiate a Corporate Insolvency Resolution Process (CIRP) against Byju’s since the existence of a debt and a default in the payment of debt is established.
The development comes after the BCCI had sought initiation of the insolvency proceedings against Byju’s over alleged unpaid dues of Rs 158 crore.
Notably, the Byju’s had a sponsorship contract with the BCCI for the Indian cricket team.
The petition was filed by BCCI last year against Byju’s parent ‘Think & Learn Pvt Ltd’ for defaulting on Rs 158 crore of dues. It pertains to the dispute around the sponsorship rights of the Indian cricket team’s jerseys.
Byju’s is now under moratorium, which means, all its debts and interest on debts will remain frozen till its lifted by the NCLT through an order.
The CoC will now run the company through the IRP/RP for a maximum period of 330 days. If the Committee is able to sell the company to an interested party through a bidding process, the company could be revived.
