The National Company Law Tribunal (NCLT) has been told that edtech firm Byju’s has settled its dispute with France-based Teleperformance Business Services. This is as per a report by Moneycontrol.
The insolvency court has asked Teleperformance Business Services to reportedly file a memo where it has to mention that it is withdrawing the plea against the ed-tech firm.
The insolvency proceeding was filed by Teleperformance Business Services, against Byju's due to unpaid dues of Rs 5 crore. In 2022, Teleperformance Business Services entered into a service agreement with Byju’s. Between March and August 2023, twenty invoices of Rs 4 crore were raised by the company, without any payment.
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Byju's acknowledged its default and did not refute the allegations. The edtech firm, as per Moneycontrol, mentioned that they would make the payment in three installments: Rs 1.5 crore in the first go, Rs 2 crore in the second go, and Rs 2.2 crore in the third go.
There are several other cases pending against Byju’s. Smartphone maker Oppo was the latest company to file an insolvency plea against the edtech firm. Other companies that filed insolvency pleas against Byju’s were McGraw Hill Education, a publishing company, and Cogent E-services, an end-to-end customer experience (CX) solutions provider.
To add to it, Glas Trust Company LLC, a non-bank loan agency, filed an insolvency plea against Byju’s. The first company to file an insolvency plea against the edtech firm was the Board of Control for Cricket in India (BCCI). A payment of Rs 158 crore was defaulted by the edtech firm as per the cricket board.
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A probe by the Ministry of Corporate Affairs mentioned that there was no sign of wrongdoing such as manipulation or siphoning of funds, as per a report by Bloomberg. However, there were shortcomings regarding the governance of the start-ups that led to their facing huge losses.
