The National Company Law Appellate Tribunal (NCLAT) last week allowed the Board of Control for Cricket in India (BCCI) and BYJU’s request for payment dispute settlement of INR 158 crore (about US $19 million). But the edtech company’s US-based lender, GLAS Trust Company, has already objected to the plan. GLAS filed a lawsuit in a US court while the NCLAT granted the parties permission to move forward with their settlement.
The US court denied the plea to block the cricket board and the educational tech startup’s payment of outstanding funds. Additionally, it decided that since the deal does not benefit their nation, the lender, GLAS Trust, should object in an Indian court if it has the ability to do so. The presiding judge, Brendan Shannon, also voiced worry about a plea asking for the suspension of a transaction in India.
For the time being, it is still evident that the BCCI, via Riju Raveendran, the brother of the founder Byju,
would proceed with the BYJU settlement procedures. Notably, this sum was outstanding for unpaid debts resulting from the company’s sponsorship of the cricket board, for which it had a contract that expired in November 2023.
Shannon told Business Standard, “I am deeply concerned that I am being asked for relief that would frustrate proceedings in another country.”
Sheron Korpus, the founder of the EdTech company, represented BYJU’s in the court case, which was also joined over videoconferencing. Korpus said that the American corporation attempted to continue the bankruptcy procedures against BYJU’s, but those were discontinued because the tribunal had approved a settlement. It would be an affront to India’s legal system, Korpus continued.
The defendant’s attorney declared, “(It) would be an unimaginable insult to the system in India.”
Also Read: Impact Player Rule is being reviewed for SMAT 2024; Secretary Jay Shah will make the final call
Nevertheless, Dream11, a fantasy sports website, acquired the title sponsorship rights as a result of BYJU’s bankruptcy proceedings. Dream11, established by Harsh Jain, is the title sponsor till the middle of 2026.
India
