Byju's parent co moves NCLAT against insolvency admission order
This story was originally published at 21:01 IST on 18 July 2024
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NEW DELHI – Think & Learn Pvt Ltd, parent of online educational services company Byju's, today moved the National Company Law Appellate Tribunal against an order of the Bengaluru bench of the National Company Law Tribunal instituting insolvency proceedings against it on a petition by the Board of Control for Cricket in India. The appellate tribunal is likely to hear the matter Monday.
On Tuesday, the Bengaluru tribunal appointed Pankaj Srivastava as the interim resolution professional for Think & Learn to carry out the functions mentioned under the Insolvency and Bankruptcy Code, 2016. It also ordered a moratorium against Think & Learn under section 14 of the code.
In 2019, Think & Learn and the Indian cricket board entered into a team sponsorship agreement which gave Think & Learn exclusive rights to market its services as the sponsor of the Indian men's cricket team. The agreement covered advertising services, promotional services, and hospitality and non-hospitality tickets to Think & Learn for every ticketed match organised by the board.
Under the agreement, Think & Learn had to pay a fee to the cricket board. The company was the team sponsor until March 2023. However, the Bengaluru tribunal's order said that after March 2022, Think & Learn made payment in full only against one invoice for 2022-23, amounting to 253.55 mln rupees. It failed to make payments against the remaining invoices raised by the cricket board for 2022-23.
After some communication between the parties, Think & Learn, in January 2023, gave its consent to the cricket board to encash a bank guarantee of 1.43 bln rupees for dues till the International Cricket Council's 2022 World Cup. The guarantee was encashed subsequently.
However, the amount was insufficient to cover the entire debt, and the bank guarantee was adjusted against some invoices. Even after encashment of the guarantee, invoices aggregating to 1.59 bln rupees remained unpaid. Consequently, the cricket board moved the tribunal to start insolvency proceedings against the company. End
Reported by Surya Tripathi
Edited by Rajeev Pai
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