Byju’s Arbitration Dispute with BCCI: Explained |
Beleaguered edtech giant Byju’s has sought arbitration through the National Company Law Tribunal (NCLT) to resolve its financial dispute with the Board of Control for Cricket in India (BCCI). While claiming to pursue an amicable settlement, Byju’s hopes arbitration will address both legal and factual aspects of the case with greater confidentiality and control.
In 2019, Byju’s signed a three-year jersey sponsorship deal with BCCI, replaced by Fantasy gaming platform Dream11 in June 2023.According to a report in Economic Times, the edtech company was paying Rs 4.6 crore for each bilateral match held in India, and Rs 1.56 crore for each international match organised by the International Cricket Council (ICC) and the Asian Cricket Council (ACC). Financial difficulties hampered Byju’s ability to fulfil its sponsorship obligations, leading to BCCI initiating insolvency proceedings for unpaid dues of Rs 150 crore.
The application was filed by the BCCI against Byjus’ parent company, Think & Learn, under the Insolvency and Bankruptcy Code (IBC), 2016, before the Bengaluru bench of NCLT. The dispute revolves around the payments from October 2022 to March 2023.
Why Byju’s wants arbitration
Byju’s sees arbitration as the preferred route for several reasons:
* Confidentiality: Arbitration proceedings are typically private, minimising potential reputational damage.
* Mutually chosen arbitrator: Expertise in sports sponsorships can be prioritised.
* Faster resolution: Compared to public courts, arbitration often offers quicker conclusions.
* Controlled process: Parties have greater control over the proceedings and outcome.
* Byju’s Past Legal Entanglements: The conflict between the BCCI and Byju’s is not the edtech firm’s first legal dispute. The company has faced various allegations and engaged in legal battles in the past. The company is facing fines and legal cases surrounding alleged FEMA violations, misleading advertising, and delayed financial reports illustrate Byju’s history of legal issues.
What next
BCCI has denied ongoing negotiations and sought time to consult the board. NCLT deferred the hearing to February 7, allowing BCCI to respond to Byju’s objections to the insolvency petition. The outcome of this case remains uncertain, but Byju’s decision to seek arbitration highlights its preference for a private and potentially faster resolution to this high-profile dispute.
In 2019, Byju’s signed a three-year jersey sponsorship deal with BCCI, replaced by Fantasy gaming platform Dream11 in June 2023.According to a report in Economic Times, the edtech company was paying Rs 4.6 crore for each bilateral match held in India, and Rs 1.56 crore for each international match organised by the International Cricket Council (ICC) and the Asian Cricket Council (ACC). Financial difficulties hampered Byju’s ability to fulfil its sponsorship obligations, leading to BCCI initiating insolvency proceedings for unpaid dues of Rs 150 crore.
The application was filed by the BCCI against Byjus’ parent company, Think & Learn, under the Insolvency and Bankruptcy Code (IBC), 2016, before the Bengaluru bench of NCLT. The dispute revolves around the payments from October 2022 to March 2023.
Why Byju’s wants arbitration
Byju’s sees arbitration as the preferred route for several reasons:
* Confidentiality: Arbitration proceedings are typically private, minimising potential reputational damage.
* Mutually chosen arbitrator: Expertise in sports sponsorships can be prioritised.
* Faster resolution: Compared to public courts, arbitration often offers quicker conclusions.
* Controlled process: Parties have greater control over the proceedings and outcome.
* Byju’s Past Legal Entanglements: The conflict between the BCCI and Byju’s is not the edtech firm’s first legal dispute. The company has faced various allegations and engaged in legal battles in the past. The company is facing fines and legal cases surrounding alleged FEMA violations, misleading advertising, and delayed financial reports illustrate Byju’s history of legal issues.
What next
BCCI has denied ongoing negotiations and sought time to consult the board. NCLT deferred the hearing to February 7, allowing BCCI to respond to Byju’s objections to the insolvency petition. The outcome of this case remains uncertain, but Byju’s decision to seek arbitration highlights its preference for a private and potentially faster resolution to this high-profile dispute.