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Byju’s Given One Week by NCLT to Resolve Payment Dispute

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NCLT grants Byju's one week to settle payment dispute

The National Company Law Tribunal (NCLT), Bengaluru bench, has granted Byju’s a week to negotiate a settlement with Teleperformance Business Services to avoid new insolvency proceedings. Teleperformance Business Services, an operational creditor, initiated insolvency proceedings after Byju’s failed to make a payment of ₹5 crore. Byju’s senior counsel, Promod Nair, requested additional time to reach an agreement with Teleperformance.

Byju’s has acknowledged the default and agreed to a structured payment plan, which includes an initial payment of ₹1.5 crore, followed by subsequent payments of ₹2 crore and ₹2.2 crore. Justices K Biswal and Manoj Kumar Dubey heard the insolvency petition filed by Teleperformance against Byju’s for non-payment of dues under Section 9 of the insolvency laws.

Sukrit Kapoor, the counsel representing Teleperformance, cited an agreement that led to the dispute, stating that Byju’s began defaulting on payments from 14 April 2023, amounting to ₹5.3 crore at an annual interest rate of 18%. Teleperformance provides business processing outsourcing services to Byju’s, specifically for call center-related services under the agreement.

The tribunal has scheduled a final hearing for 30 April while allowing the parties time to finalize their settlement. Despite Byju’s claim of making an initial payment of ₹1.5 crore, Teleperformance disputes this claim, emphasizing the importance of reaching a settlement to resolve the payment dispute.

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