Lawyers representing embattled edtech firm Byju’s at the National Company Law Tribunal (NCLT) said that the company has filed an application to refer its dispute with the Board of Control for Cricket in India (BCCI) to an arbitrator.
The NCLT, however, opined that arbitration may not come in the way of proceedings initiated by the BCCI under the Insolvency and Bankruptcy Code, 2016. Byju’s, however, contended that there are both questions of law and fact involved in the dispute, which can be adjudicated only through arbitration.
The NCLT was further informed that Byju’s is currently engaged in negotiations with the BCCI to settle the dispute. “Byju’s was negotiating with the BCCI even last night,” the company’s lawyer, senior advocate Pramod Nair, told the NCLT. The edtech also informed the NCLT that it had filed objections to the BCCI’s insolvency plea against the company.
The cricket board’s lawyers, however, denied that such negotiations were taking place, but told the tribunal that they would take instructions from the BCCI in this regard. The hearing of the case has now been deferred to February 7, to enable the BCCI to respond to Byju's' objections and arbitration application.
Arbitration is a mechanism to resolve disputes between parties without going to court, wherein a neutral person (an arbitrator) is appointed to adjudicate the dispute, and the judgment is legally enforceable. For parties to resolve their dispute through arbitration, they must necessarily have an agreement expressing their intention to arbitrate.
At the last hearing, Byju’s assured the NCLT that the company was in good health.
Case file
The case, which was filed by the BCCI on September 8, came up for a hearing only on November 28. At the very first hearing, the NCLT issued notice to Byju’s and sought its response.
According to the last order, the BCCI claimed that Byju’s had defaulted on payment of Rs 158 crore. “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 crore. excluding TDS as reflected,” the NCLT order read.
Byju's previously had three significant branding partnerships with the BCCI, ICC (International Cricket Council), and FIFA (Federation Internationale de Football Association), all of which were up for renewal in 2023. However, the company confirmed earlier in the year that it would not renew any of them. It remains unclear whether the filed suit is related to this matter or another issue.
This development also follows fresh troubles for Byju's as the Enforcement Directorate (ED) confirmed sending a show cause notice to Byju’s parent, Think and Learn Private Limited, and founder Byju Raveendran in the FEMA violation case
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