The National Company Law Tribunal (NCLT) bench in Bengaluru has issued a notice to edtech giant BYJU’S regarding an insolvency plea filed by French outsourcing firm Teleperformance Business Services, according to sources familiar with the matter.
BYJU’S has been granted two weeks to respond to Teleperformance’s plea, with the next hearing scheduled for March 11, 2024. Representing Teleperformance are lawyers Sukrit Kapoor and Aviral Tripathi.
When approached for comment, BYJU’S declined to provide a statement.
This notice marks the second legal action against BYJU’S by NCLT within the week. On February 6, the tribunal issued a similar notice following an insolvency petition filed by digital marketing firm Surfer Technologies.
Earlier reports suggested that BYJU’S had outstanding dues owed to Teleperformance for various services provided. Sources indicated that BYJU’S abruptly terminated its contract with Teleperformance without proper notice, resulting in unpaid dues amounting to approximately INR 3-4 Crore.
Teleperformance had been engaged in customer service and sales operations for BYJU’S India, aiding in student onboarding for courses.
These insolvency proceedings add to the growing legal challenges facing BYJU’S. The Board of Control for Cricket in India (BCCI) has also taken BYJU’S to NCLT over a payment dispute of INR 158 Cr.
Additionally, overseas lenders for BYJU’S $1.2 Bn Term Loan B have initiated insolvency proceedings against the company. Sources indicate that BYJU’S founder Raveendran is in negotiations with these lenders to resolve the issue.
BYJU’S has encountered various challenges over the past year, including financial constraints, workforce reductions, legal disputes with creditors, write-offs of subsidiary companies, and escalating losses. Despite exploring external fundraising avenues and potential SPAC deals, the company has faced hurdles.
Last month, BYJU’S finally submitted its financial statements for FY22 after a prolonged delay. The company reported a consolidated net loss of INR 8,245.2 Cr for FY22, marking an 81% increase from INR 4,564.3 Cr in FY21.
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- Source: https://timesnext.com/nclt-issues-notice-byjus-teleperformances-insolvency-plea/
