Edtech major Byju’s has reached a settlement with France-based Teleperformance Business Services, the National Company Law Tribunal (NCLT) was informed on June 26.
The insolvency court has directed the France-based vendor to file a memo expressing its intention to withdraw the insolvency plea in light of the settlement. This move is expected to lead to the closure of the case.
The NCLT had previously urged Byju’s on multiple occasions to settle the dispute with Teleperformance within a week. The tribunal had cautioned that failure to reach a settlement would result in the case being heard on its merits, with an order passed accordingly.
The genesis of this case dates back to February 7, when the NCLT issued a notice to Byju’s regarding an insolvency plea filed by Teleperformance. The dispute arose from Byju’s decision to discontinue the services of outsourcing agencies, including Teleperformance, Cogent E Services, and iEnergizer, in mid-2022 as part of cost-cutting measures amidst mounting financial pressures.
Teleperformance had entered into a service agreement with Byju’s in April 2022. Between March and August 2023, the French firm raised over 20 invoices amounting to more than Rs 4 crore, which remained unpaid. Notably, Byju’s did not contest these claims and admitted to the default.
As per Teleperformance, Byju’s had agreed to clear the dues in three tranches: Rs 1.5 crore in the first tranche, Rs 2 crore in the second, and Rs 2.2 crore in the final tranche.
While this settlement brings closure to one of Byju’s legal challenges, the edtech firm continues to face approximately 10 similar proceedings with other operational and financial creditors.
The Board of Control for Cricket in India (BCCI) has the largest claim, amounting to Rs 158.91 crore. Surfer Technologies is seeking Rs 2.30 crore from the company. OPPO Mobiles India has filed a claim for Rs 1 crore. Cogent E-services is owed Rs 6.74 crore, while Mcgraw Hill Education India has claimed Rs 1.75 crore. Lastly, I-energizer has a substantial claim of Rs 13.57 crore against Byju’s. The total amount due to creditors, according to sources, stands at around Rs 189 crore.