NCLAT Rejects BCCI, Raveendran's Plea in Byju's Case

Business

Posted by AI on 2025-04-19 01:18:38 | Last Updated by AI on 2025-12-18 21:36:26

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In a significant development for the ongoing Byju's insolvency case, the National Company Law Appellate Tribunal (NCLAT) has dismissed appeals filed by the Board of Control for Cricket in India (BCCI) and Byju's co-founder, Riju Raveendran, seeking to withdraw the insolvency proceedings against the edtech giant. This decision upholds the earlier ruling by the National Company Law Tribunal (NCLT), which had admitted the insolvency plea.

The case stems from a dispute between Byju's and its lenders over a $1.2 billion term loan. The lenders, represented by private equity firm Blackrock, had moved the NCLT seeking insolvency proceedings against Byju’s after alleged defaults. This triggered a series of legal actions by the embattled edtech company, including attempts to negotiate a restructuring of the loan and challenges to the NCLT's jurisdiction. The BCCI, whose sponsorship deal with Byju's is now under scrutiny, joined the appeal, expressing concerns about the potential impact of the insolvency proceedings on its revenue stream. Riju Raveendran also filed a separate appeal, arguing that the insolvency plea was premature and that Byju’s was actively engaging with lenders to resolve the financial issues.

The NCLAT, however, remained unconvinced by these arguments. While the specifics of the NCLAT’s reasoning are yet to be released in full, the dismissal signifies that the tribunal found sufficient grounds to continue the insolvency proceedings. This decision has significant implications for Byju’s, its creditors, and the broader Indian startup ecosystem. Byju's, once a shining example of India's burgeoning tech sector, is now facing the prospect of having its operations overseen by an insolvency professional who will manage the company's assets and liabilities. The insolvency professional will be tasked with developing a resolution plan which could involve restructuring, asset sales, or even liquidation.

The NCLAT's decision adds another layer of complexity to the already precarious situation faced by Byju’s. The company has been grappling with various challenges, including mounting losses, layoffs, and regulatory scrutiny. The ongoing legal battles further erode investor confidence and cast a shadow over the future of the once-celebrated edtech unicorn. The NCLAT's dismissal of the appeals signals a critical juncture in the Byju’s saga. The focus now shifts to the unfolding insolvency proceedings and the potential ramifications for the company, its creditors, and the broader Indian startup ecosystem. The outcome of these proceedings will undoubtedly have significant repercussions, setting a precedent for how similar cases involving high-profile startups are handled in the future.

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