The National Company Law Tribunal (NCLT) in Bengaluru has issued notice regarding an insolvency plea filed by mobile phone manufacturer Oppo against embattled ed-tech company Byju’s.
This plea is expected to be heard again in the last week of May, as the tribunal will enter a summer break starting May 3.
In addition to Oppo, two new insolvency pleas have been lodged against Byju’s within the past week. These were filed by the US-based publishing company McGraw Hill Education and end-to-end customer experience solutions company Cogent E-services. With these new filings, the total number of insolvency pleas against Byju’s has reached seven. The ed-tech company is also contending with an oppression and mismanagement plea filed by its investors in the NCLT.
Cogent E-services submitted its plea as early as February 2024, while McGraw Hill and Oppo filed theirs in March. However, all three pleas were officially registered in the NCLT within the last week. These cases are anticipated to be heard in late May or early June.
Under the Insolvency and Bankruptcy Code, 2016, there are two types of creditors: operational creditors (OCs) and financial creditors (FCs). OCs provide goods and services to a business but haven’t received payment, while FCs are entities that lend money to the company.
A total of six OCs and one FC have taken legal action against Byju’s in the NCLT.
Other Insolvency Petitions:
The Board of Control for Cricket in India (BCCI) filed the initial insolvency plea against Byju’s in November 2023, citing a default on a payment of Rs 158 crore. This plea is currently at an advanced stage of hearing in the NCLT. Following BCCI’s action, France-based Teleperformance Business Services, Glas Trust Company (lenders), and digital marketing firm Surfer Technologies have also lodged insolvency pleas.
