CEO Byju Raveendran said, Byju’s faces total shutdown if insolvency proceeds. Byju’s will be closed if the bankruptcy proceedings proceed: CEO Byju Raveendran said this in the court filing, said- business will come to a complete standstill.

If bankruptcy proceedings begin against edtech company Byju’s, thousands of employees of the company will be forced to leave their jobs. Besides, the company’s services will also be completely stopped. According to Reuters report, Byju’s founder and CEO Byju Raveendran has said these things in a court filing.

Three days ago, the National Company Law Tribunal (NCLT) had accepted BCCI’s petition to initiate bankruptcy proceedings against Byju’s. Now NCLT has started action in this matter. Byju’s assets have been frozen and its board suspended. This case is related to the sponsorship contract between Byju’s and BCCI for the jersey of the Indian cricket team.

Raveendran asked the court to cancel the bankruptcy proceedings
Byju Raveendran has filed an appeal in the court seeking quashing of the bankruptcy proceedings. The appeal states that due to this insolvency action, those vendors who provide critical services for the maintenance of the company’s online platform will be declared in default. Due to this, the services of the company will be completely stopped and the business will come to a complete halt.

The court will hear the case on Monday
Raveendran’s lawyer has filed a 452-page appeal in the Karnataka High Court. However, this paper has not been made public yet. The court will hear the case on Monday (July 22). The documents state that Raveendran is ready to pay the dues to BCCI within 90 days. Byju’s currently has around 27,000 employees, which includes 16,000 teachers.

BCCI had filed a petition last year against Byju’s parent company Think and Learn Pvt Ltd to recover the dues of Rs 158 crore. The next hearing of the case is to be held on November 15. However, it has been reported that Byju’s is talking to BCCI to resolve the matter.

Byju’s did not give ₹158.9 crore of contacts to BCCI
In January last year, Byju’s had given permission to BCCI to encash bank guarantee of Rs 143 crore. At present the outstanding amount on BYJU’S is Rs 158.9 crore. The case filed by BCCI on 8 September 2023 came up for hearing on 28 November.

NCLT said- Byjus’ default revealed through e-mail trail
The Bengaluru bench of NCLT, while allowing the petition, had said that it is clear from the e-mail trail between BCCI and Byju’s that Think and Learn has defaulted. The bench has appointed Pankaj Srivastava as interim resolution professional. He will have to form a committee of creditors within 30 days from the date of appointment.

First defaulted on August 21, 2022
According to the information given in the order, Think and Learn defaulted on a total of 12 invoices (bills) sent by BCCI after several international tours and series of the Indian cricket team. BCCI said that Byju’s had defaulted for the first time on August 21, 2022.

Creditors will get control of the company from the current management
According to the Insolvency and Bankruptcy Code (IBC), the control of the company will now pass from the current management to the creditors (whose money is owed). At the same time, no assets of Byju’s will be transferred while the company is in the Corporate Insolvency Resolution Process (CIRP).

Company can appeal against the order in NCLAT
Company founder Byju Raveendran or any member of the board can appeal against this order in the National Company Law Appellate Tribunal (NCLAT) and then in the Supreme Court. Let us also tell you that in the very first hearing, NCLT had issued a notice to Byju’s and sought its reply.

Investment firm Prosus’s investment of Rs 4,115 crore sank.
Recently, investment firm Prosus had written off its investment in Byju’s. That means the investor had accepted that his investment of about Rs 4,115 crore in Byju’s was lost. He had 9.6% stake in the edtech company. The investor had given this information in his annual report.