Edtech giant Byju’s challenges insolvency proceedings in NCLAT

Edtech company Byju’s has challenged the National Company Law Tribunal (NCLT) order that initiated insolvency proceedings against the startup in the National Company Law Appellate Tribunal (NLCAT). The appellate tribunal is expected to hear the appeal on July 22 though the company sought an urgent hearing.

businessline previously reported that Byju’s would try settling the matter out of court while challenging the NCLAT order.

• Also read: Tribunal admits BCCI’s insolvency plea against Byju’s; edtech to seek out-of-court deal

“The company remains solvent with thousands of employees. I am prepared to commit to depositing the entire ₹158 crore in one installment within one month.” senior advocate Abhishek Manu Singhvi, representing Byju’s, told NCLAT.

Byjus was dragged to court following a plea raised by the Board of Control for Cricket in India (BCCI) with the NCLT, alleging non-payment of ₹158 crore sponsorship for the Indian cricket team jerseys.

• Also read: NCLT tells Byju’s to pay salary dues to employees or face audit

The NCLT order led to Byju Raveendran losing control of the company. The tribunal appointed bankruptcy officials to oversee the operations of the company. Additionally, Pankaj Srivastava was appointed as the interim resolution professional (IRP).

The NCLT also dismissed Byju’s request to refer the dispute to arbitration and issued a ruling prohibiting Byju’s from transferring assets during the insolvency proceedings.