BCCI to settle INR 158 crore dues with BYJU's after US court ruling

Last week, the National Company Law Appellate Tribunal (NCLAT) approved a settlement between the Board of Control for Cricket in India (BCCI) and BYJU's over a payment dispute worth INR 158 crore (roughly US $19 million). However, this move was opposed by GLAS Trust Company, a US-based lender for BYJU's. Despite the opposition, the NCLAT allowed the parties to proceed with their settlement.

GLAS Trust filed a case in a US court to oppose the settlement, but the court turned down their request. The judge, Brendan Shannon, ruled that any opposition should be addressed in an Indian court since the transaction is primarily of interest to India. Shannon expressed his concern about interfering in another country's legal proceedings.

“I am deeply concerned that I am being asked for relief that would frustrate proceedings in another country,” Shannon said.

BYJU's participated in the court case through videoconferencing, with the founder's brother, Riju Raveendran, representing the company. BYJU's lawyer, Sheron Korpus, argued that GLAS Trust's actions to keep insolvency proceedings against BYJU's active were halted due to the tribunal's approval of the settlement. Korpus emphasized that challenging the settlement would insult India's judicial system.

“(It) would be an unimaginable insult to the system in India,” the defendant lawyer said.

As things stand, the BCCI will continue with the settlement formalities with BYJU's. This settlement pertains to unpaid dues from BYJU's sponsorship rights with the cricket board, which were initially contracted until November 2023. Due to insolvency proceedings against BYJU's, Dream11, a fantasy sports platform founded by Harsh Jain, took over the title sponsorship rights. Dream11 will hold these rights until mid-2026.