Educational technology company Byjus, which is on the verge of bankruptcy, does not seem to be getting any relief and now the Supreme Court has also dealt a blow to the company. The court on Wednesday rejected the National Court of Justice’s (NCLT) order to close the bankruptcy proceedings against the Byju Ravindran-led company in connection with Byju’s. A three-member bench headed by Chief Justice DY Chandrachud has given this direction.
SC with dues of Rs 158.9 crore
The Supreme Court also set aside the NCLT order in which Byjus was given approval to settle dues of Rs 158.9 crore with the Board of Control for Cricket in India (BCCI). Let us tell you, you must have seen Byju’s logo on the Team India jersey for a long time. Previously, the Oppo logo was visible on Team India’s jersey, which was replaced by Byju’s in the year 2019. Byju’s deal with BCCI ended in March 2023.
Hearing at the request of a US company
The court on Wednesday ruled on the petition by US firm Glass Trust Company LLC against the NCLAT order. The order said the Board of Control for Cricket was directed to deposit the settlement amount of Rs 158.9 million with the committee of creditors. The court said the settlement amount kept in a separate escrow account shall be deposited in the escrow account of the creditors committee. It may be noted that last August, NCLT had ordered closure of bankruptcy proceedings against Byju’s after approving settlement of the pending amount of Rs 158.9 crore with the BCCI. But this relief could not last long.
The company’s value fell from $22 billion to $0.
The value of educational technology company Byju’s was $22 billion in 2022, a figure that has now been reduced to zero. Byju Raveendran himself, found by Byju, had given this information during a virtual press conference recently. He said that after the investors left, the company ran out of money and little by little the company became completely bankrupt. However, Ravindran said we will return soon. The company is currently facing a bankruptcy crisis. He had said that investors like Prosus had ended their investments in what was once the highest valued Indian startup.
These are the main reasons for the downfall of Byju’s!
If we talk about what happened when Byju fell to the ground in no time, then let us tell you that there are many reasons behind this. The first of them is that the demand for online education peaked during the Covid-19 outbreak, but as soon as the shadow of Corona disappeared, it began to decline. Additionally, the company made numerous acquisitions, so its debt load continued to increase. The third and important reason was that as soon as the company’s situation began to deteriorate, one after another large investors began to abandon it.
