BYJU’s founder Byju Raveendran and Board of Control for Cricket in India (BCCI)(Twitter)
The Board of Control for Cricket in India (BCCI) and BYJU’s plea for payment dispute settlement worth INR 158 crore (roughly US $19 million) was granted by the National Company Law Appellate Tribunal (NCLAT) last week. However, GLAS Trust Company, a US-based lender for the edtech firm, had already opposed the move. As the NCLAT approved the parties to proceed with their settlement, GLAS filed a case in a court in the States.
The US court turned down the request for opposing the settlement of pendings funds between the cricketing board and the educational tech startup. It also ruled that the lender, GLAS Trust, if it may oppose, do the same in an Indian court, since the transaction does not interest their country. Brendan Shannon, the ruling judge, also expressed concern that a plea demanding abstention of a transaction in India.
“I am deeply concerned that I am being asked for relief that would frustrate proceedings in another country,” Shannon stated, as quoted by Business Standard.
BYJU’s also joined the court case through videoconferencing, founder of the EdTech firm was represented by Sheron Korpus. In his response, Korpus claimed that the American company tried to keep insolvency proceedings against BYJU’s active, which were halted owing to the allowance of settlement by the tribunal. Korpus also added that it would mean an insult to India’s judicial system.
Also Read: Tribunal approves BCCI-BYJU’s INR 158 crore settlement appeal
“(It) would be an unimaginable insult to the system in India,” the defendant lawyer said.
For now, the things remain clear that the BCCI will be continuing its settlement formalities with BYJU’s through Riju Raveendran, brother of the founder Byju. Notably, this amount was pending for the unpaid dues incurred out of the firm’s sponsorship rights for the cricket board, which was originally contracted till November 2023. However, insolvency proceedings against BYJU’s meant that the title sponsorship rights were taken over by Dream11, a fantasy sports platform. Founded by Harsh Jain, Dream11 will be title sponsor till mid-2026.