Byju Files Writ Petition In Karnataka High Court Against NCLT's Insolvency Order
Rajesh Kumar
29 July 2024 2:45 AM GMT
Byju Raveendran, the founder of the edtech giant Byju's, has filed writ petiton in the Karnataka High Court to halt the insolvency proceedings against his company. This move follows the National Company Law Tribunal (NCLT) ordering insolvency proceedings against Byju's parent company, Think and Learn Private Limited (TLPL), earlier this month.
The insolvency proceedings were triggered by a plea from the Board of Control for Cricket in India (BCCI) over unpaid dues amounting to Rs 158 crore.
On July 16, the NCLT admitted TLPL for insolvency proceedings under the Insolvency and Bankruptcy Code (IBC), 2016. This decision came after BCCI's complaint about non-payment of sponsorship dues by the edtech company, which had previously adorned the Indian cricket team's jerseys with its logo.
The tribunal appointed Pankaj Srivastava as the interim resolution professional (IRP) to oversee the company's operations during the insolvency process. The IRP's role includes forming a committee of creditors (CoC) to address the company's financial obligations.
The CoC, once established, will have up to 330 days to find a resolution for the company's debts, potentially inviting bids from interested parties to buy the company. The primary objective of this process is to revive the company by recovering the dues.
If the CoC fails to find a buyer, the tribunal may order the liquidation of Byju's.
Byju's' recent writ petition in the Karnataka High Court seeks to suspend the NCLT's insolvency order until the National Company Law Appellate Tribunal (NCLAT) hears his appeal.
This is not Byju's first attempt to challenge the insolvency proceedings. An earlier plea in the Karnataka High Court sought to quash the insolvency order but was not admitted. The current petition seeks at least temporarily halt the insolvency proceedings to allow the NCLAT to consider the appeal.
