The National Company Law Tribunal (NCLT), in an order delivered on July 16, admitted a plea filed by the Board of Control for Cricket in India (BCCI) to initiate a corporate insolvency resolution process for Think and Learn Pvt Ltd, the parent company of BYJU’S.
“This Adjudicating Authority is of the considered opinion that there is no reason to deny the petition filed under section 9 of the IBC, 2016 by the Operational Creditor to initiate CIRP against the Corporate Debtor, since the existence of a debt and a default in the payment of debt is clearly established,” the NCLT order noted.
“Therefore, the instant Company Petition bearing CP (IB) No. 149/2023 is admitted against the Corporate Debtor and moratorium is declared in terms of Section 14 of the Code,” the order added.
Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016 allows operational creditors to initiate insolvency proceedings against a debtor for unpaid dues exceeding a specified amount.
CIRP, which stands for Corporate Insolvency Resolution Process, is a legal process under the IBC, 2016, aimed at resolving insolvency issues faced by corporate debtors in a time-bound manner, typically through restructuring or liquidation.
The NCLT bench has appointed Pankaj Srivastava as an interim resolution professional to carry out the functions as mentioned under the IBC.
This is a developing story.
Edited by Affirunisa Kankudti
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