Insolvency Proceedings against Byjus on default of Rs. 158 Crores: NCLT admits Plea by BCCI [Read Order]
The NCLT admitted the CIRP petition against Think & Learn Pvt. Ltd. on the existence of a debt and a default in the payment of debt of Rs. 158.90 crores.
NCLT – BCCI’s Against – Insolvency Proceedings – NCLT Admits – National Company Law Tribunal – Board of Control for Cricket in India – Insolvency and Bankruptcy Code – taxscan
NCLT – BCCI’s Against – Insolvency Proceedings – NCLT Admits – National Company Law Tribunal – Board of Control for Cricket in India – Insolvency and Bankruptcy Code – taxscan
The Bengaluru bench of the National Company Law Tribunal ( NCLT ) admitted the Insolvency plea by the Board of Control for Cricket in India ( BCCI ) against Think & Learn Private Limited, the Corporate Debtor under Section 9 of Insolvency and Bankruptcy Code, 2016 ( IBC ) for default of Rs. 158.90 crores.
BCCI and Think & Learn Pvt. Ltd. entered into a 'Team Sponsor Agreement' granting the Corporate Debtor the exclusive rights to market their brand as the sponsor of the Indian cricket teams, use video footage for advertising, engage players in campaigns, use the Operational Creditor's intellectual property, and receive hospitality tickets in exchange of a 'fee'.
The terms of payment included 50% of the payment to be made 30 days prior to the series and the remaining amount to be paid after the last match. For the year 2022-2023, Think & Learn Pvt. Ltd. fully paid only one invoice, other invoices remained unpaid, leading to an outstanding amount of Rs 158.90 crores.
Despite acknowledging the debt and requesting extensions via emails in April and May 2023, Think & Learn Pvt. Ltd. failed to pay the outstanding amount. BCCI issued a Demand Notice dated 19.07.2023 which was responded to by Think & Learn Pvt. India via reply dated 29.07.2023, claimed that no contract was in force and disputed the validity of the debt.
BCCI filed a CIRP petition under Section 9 dated 23.09.2023 against Think & Learn Pvt. India for an outstanding debt of Rs. 158.90 crores before NCLT Bengaluru.
The bench comprising Justice K. Biswal (Judicial Member) and Mr. Manoj Kumar Dubey (Technical Member)allowed the application and determined that the 'rights fee' owed by Think & Learn Pvt. Ltd. to BCCI is 'Operational Debt' under Section 5(21) of IBC.
The bench refused the request of Think & Learn Pvt. Ltd.'s To refer the dispute to arbitration under Section 8 of the Arbitration and Conciliation Act, 1996. The Tribunal ruled that the Adjudicating Authority has to either reject or admit the Application and cannot postulate a third option. In this matter, the application under section 9 of the IBC has been admitted by the Order passed today, therefore, the application for referring the matter for Arbitration is not maintainable.
The NCLT admitted the CIRP petition against Think & Learn Pvt. Ltd. on the existence of a debt and a default in the payment of debt of Rs. 158.90 crores.
To Read the full text of the Order CLICK HERE
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