Can Byju’s and BCCI Reach a Settlement? Exploring the Insolvency Dispute

Byju’s Attempts Out-of-Court Settlement with BCCI Amid Insolvency Proceedings

Embattled edtech giant Byju’s, currently admitted to insolvency proceedings, is striving to resolve the matter with the Board of Control for Cricket in India (BCCI) outside of court, sources close to the situation revealed to Moneycontrol.

On July 16, the National Company Law Tribunal (NCLT) admitted Byju’s parent company, Think and Learn Pvt Ltd, into the insolvency resolution process following a plea filed by BCCI.

“They are attempting to settle the matter with BCCI,” the sources mentioned.

Sources added, “Byju’s must obtain a stay of the insolvency resolution process from the National Company Law Appellate Tribunal (NCLAT) before they can pursue a settlement. However, if BCCI resists a stay, NCLAT may hesitate since Byju’s has acknowledged its debt.”

This route is expected to be challenging as Byju’s needs BCCI’s cooperation to secure a stay on the tribunal’s order before moving forward with a settlement.

In response to the situation, a Byju’s spokesperson stated, “As we have always maintained, we wish to reach an amicable settlement with BCCI and we are confident that, despite this order, a settlement can be reached. In the meantime, our lawyers are reviewing the order and will take necessary steps to protect the company’s interests.”

The NCLT has appointed Pankaj Srivastava as the interim resolution professional (IRP), who will oversee the company’s operations until a Committee of Creditors (CoC) is formed.

Under the Insolvency and Bankruptcy Code (IBC), the current management of Byju’s will lose control of the company, which will now rest with its creditors. During the Corporate Insolvency Resolution Process (CIRP), all debts and interest on debts will be frozen, and no assets of Byju’s can be transferred.

The IBC also prevents the institution or continuation of any legal proceedings against the company during this period.