Look! Who Is After Byju's This Time?

A two-member bench based in Bengaluru from the Insolvency tribunal NCLT has issued a notice to Think & Learn following a petition filed by the Board of Control for Cricket in India (BCCI), claiming dues of Rs 158 crores as an operational creditor. Byju's served as India's main sponsor from 2019 to 2023.

The BCCI has accused Byju's, the embattled edtech giant, of defaulting on the payment. This information was found on the National Company Law Tribunal (NCLT) website, which revealed that a general notice was issued to Byju's via email on January 6, 2023, highlighting the default amount, excluding TDS.

NCLT Grants Two Weeks for Response

The NCLT has granted Byju's a two-week window to respond to the allegations. Following the submission of Byju's response, BCCI will be given an additional week to file a rejoinder in the case. This legal development adds to the growing list of challenges faced by Byju's, which has been grappling with various issues in recent times.

The NCLT order said, “two weeks is granted to the Respondent (Byju’s) to file a reply and one week thereafter is granted to the Applicant (BCCI) to file rejoinder, if any, after duly serving the copy on the other side.” The tribunal has directed to list the matter on December 22, 2023, for the next hearing in this matter.

Byju's Calls for AGM Amidst Turmoil

In a separate development, Byju's has called for an Annual General Meeting (AGM) at a time when the company is facing challenges on multiple fronts. The AGM is reportedly scheduled for December 20, 2023. During the meeting, Byju's plans to address several matters, including the approval of audited financials for the fiscal year 2022, along with the board's report.

Additionally, the company aims to approve the appointment of MSKA & ASSOCIATES as statutory auditors and finalize the remuneration of B Y & ASSOCIATES, the cost accountants and auditors, for FY22, FY23, and FY24. This move comes a month after Byju's announced partial or incomplete FY22 financials, causing further concern amidst a series of setbacks.

Employee Salary Woes and Technical Glitches

Byju's, which has been in the limelight for financial troubles, has recently credited pending salaries to approximately 1,000 employees on December 4. With nearly 14,000 employees on the payroll of Byju's' India entity, this move comes as a major relief. The company had cited a technical glitch as the cause for the delayed salary payments, claiming that a system error during the upload process to the payroll service provider had led to the issue.

However, Byju's has been under scrutiny for its handling of employee settlements, having delayed full and final settlements for laid-off employees once again. The company, based in Bengaluru, had initially shifted the payment date from September to November. Byju's did not provide comments on the matter at the time of publishing this article, leaving stakeholders and observers awaiting further updates on the unfolding situation.

As Byju's navigates these multiple challenges, its financial and operational decisions will be closely monitored by industry experts, investors, and the broader edtech community. The outcome of the NCLT case and the discussions at the upcoming AGM are expected to play a crucial role in determining the future trajectory of the embattled edtech giant.

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