Edtech firm BYJU’S has reportedly notified the National Company Law Tribunal (NCLT) in Bengaluru that it has taken the Rs 158 crore payment dispute with the Board of Control for Cricket in India (BCCI) to an arbitrator.
The Bengaluru company emphasised that the case involved both law and fact, necessitating resolution through arbitration, The Economic Times reported. Additionally, the edtech firm mentioned having lodged objections against the insolvency petition filed by the BCCI in September 2023.
The NCLT Bengaluru bench concluded that the arbitration application would not impact the ongoing insolvency proceedings, the report noted. BYJU’S also noted that it is working towards resolving the matter with the cricket administrator.
However, BCCI counsels denied any discussions and requested the tribunal for time to confer with the board, the report added.
Consequently, the hearing was postponed to February 7, granting BCCI the opportunity to submit a response to BYJU’S objections.
In November, NCLT issued a notice to BYJU’S parent in response to a petition filed by the BCCI, claiming dues of Rs 158 crore under Section 9 of the Insolvency and Bankruptcy Code, 2016.
The NCLT order noted, “It is stated that the General notice was issued to BYJU’s vide email dated 06.01.2023 and the default amount of Rs.158 Cr. excluding TDS…”
BYJU’S initially secured a three-year jersey sponsorship agreement from BCCI in March 2019, later extended for an additional year. Payments were made until September 2022, and the dispute involves payments from October 2022 to March 2023.
Over the years, BYJU’S has heavily relied on marketing and advertising to acquire and retain customers. The startup consistently allocated a significant portion of its total expenses to advertisement and promotion costs.
BYJU’S, which rapidly grew through strategic acquisitions, has encountered significant challenges post the pandemic-led edtech boom. It has also come under the scanner of the Enforcement Directorate last year.
Edited by Suman Singh
