Byju's vs BCCI: NCLT Set to Hear Landmark Case on March 20

According to sources, the matter of Byju vs BCCI has been scheduled for hearing on March 20 by the Bengaluru bench of the National Company Law Tribunal.

Following the conclusion of the proceedings, the court is also expected to issue a ruling regarding the BCCI's bankruptcy suit against Byju's.

The Problem

In September, the BCCI filed an application with the Bengaluru bench of the NCLT against Think & Learn Pvt Ltd, the company that runs Byju's, for nonpayment of about ₹160 crore in outstanding debts.

This issue concerns the rights dispute around the sponsorship of the Indian cricket team's uniforms.

Based on the most recent information accessible on their website, the bankruptcy tribunal filed the case for a new hearing on November 15.

Subsequently, on November 28, the educational technology company said that it is in negotiations to resolve an ongoing bankruptcy case brought against it at the Bengaluru NCLT with the Board of Control for Cricket in India (BCCI).

Without providing any information, a spokesman for Byju had stated, "We are in talks with the BCCI to settle the matter and we hope to achieve that soon."

In fact, the ed-tech company has been a partner of the Indian cricket team since 2019, and the squad's shirt front has its branding.

Byju's renewed their sponsorship agreement with the BCCI in June of last year, and it will run until November 2023.

With the remaining ₹160 crore to be paid in installments, the ed-tech company has requested that the board encash a bank guarantee of ₹140 crore.

Other Legal Issues

As the Karnataka High Court is ready to hear arguments on March 13 over a potentially disruptive investor revolt, Byju's future is in jeopardy.

Any resolutions voted at Think and Learn's February 23 Extraordinary general meeting (EGM) will be up for review by the court.

The Think and Learn EGM on February 23 was the source of the dispute. Significant shareholders, who ap  parently own more than 32% of the business, cast votes on motions proposing Byju Raveendran,

The founder and CEO, and his relatives be removed from the board. The purported reason for this action was worries about "mismanagement and failures."

Byju's contested the legitimacy of the EGM and the adopted resolutions, however. With the issuance of an interim decision by the Karnataka High Court, the investor activities were essentially put on hold until the final hearing on March 13.

Whether or not the resolutions adopted at the EGM will be put into effect will be decided at this hearing.