BCCI Moves NCLT To Withdraw Insolvency Plea Against BYJU'S

The Board of Cricket Council for Cricket in India (BCCI) has moved an application before the National Company Law Tribunal (NCLT) to withdraw its insolvency petition against BYJU’S, the counsel for the beleaguered edtech startup’s insolvency resolution professional Pankaj Srivastava reportedly told a bench of the Tribunal.

As per a report by ET, the move was opposed by BYJU’S creditors Glas Trust and Aditya Birla Finance.

The counsel representing Srivastava alleged that Glas Trust’s intent by moving the courts is to cloud the insolvency proceeding. “Ultimately, if the withdrawal application is taken up and considered on its merits by this honourable Tribunal, orders can be passed. Thereafter, my Lords, what remedies Glas is to pursue should be left to be treated separately,” the report quoted him as saying.

It is pertinent to note that Glas Trust as well as Aditya Birla Finance are seeking removal of Srivasatava.

Earlier this year, the NCLT admitted the BCCI’s insolvency petition against BYJU’S. However, both the parties reached a settlement following that, after which the National Company Law Appellate Tribunal (NCLAT) set aside the insolvency proceedings.

Following the admission of the BCCI’s plea, the NCLT filed by Glas Trust, a consortium of BYJU’S US-based Term Loan B (TLB) lenders.

However, Glas Trust moved the Supreme Court (SC) to get back its dues. In turn, the SC and instructed the BCCI to deposit the funds retrieved from BYJU’S with the committee of creditors.

From authorities to BYJU’S investors, all are in the fray to recover their dues from the company.

A couple of days ago, it was reported that the Directorate General of GST Intelligence (DGGI) was to recover INR 250 Cr of unpaid taxes from the US subsidiaries of BYJU’S.

Besides DGGI, the Central Board of Indirect Taxes and Customs (CBIC) also worth INR 157 Cr ($18.7 Mn) before the resolution professional. Further, Karnataka’s commercial tax Department sought dues worth INR 691 Cr ($82.3 Mn).

Not to mention, the company is facing disgruntled investors from all over the world. Its investors General Atlantic, Peak XV Partners, Sofina SA, MIH Edtech Investments for a large part of 2024.

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