The parent Edtech company of Byju’s, Think and Learn Pvt Ltd has now been designated into insolvency category by National Company Law Tribunal (NCLT) by July 16.
This happened, due to the plea submitted by Board of Control for Cricket in India (BCCI), after company was not able to clear sponsorship payment. Which was worth ₹158 crore.
Now, that the company has entered the category of insolvency, Pankaj Srivastav has been given an interim post of resolution professional, as the whole management led Byju owner Raveendran has been officially suspended.
Which means, the group of creditors will now manage the company for 330 days. During this period, they will look for a buyer for the company. But if they find the buyer within these stipulated days, the company can potentially get liquidated.
Usually under Insolvency and Bankruptcy Code (IBC) 2016, Employees might receive their dues for 24 months before liquidation process.
As these are one of the second most important priority for settlements under section 53(1) of the Insolvency and Bankruptcy Code (IBC), 2016. The first one is resolution of professionals.
The dues given to the employees 12 months before the liquidation comes under the 3rd priority. Only then, creditors enter the picture.
As for the taxes, under the IBC Law, it is a fifth priority. But the liability will still remain on suspended management, as they are solely at fault. However, the government can also seek it from resolution professional itself.
Coming to the current employees of the company, it now depends on committee of creditors on whether to keep employees or remove them in the coming 330 days.
