Board of Control For Cricket In India Vs Think & Learn Private Limited (NCLT Bengaluru)
NCLT Bengaluru held that ‘right fees’ for which operational creditor (BCCI) is liable to be paid by Corporate Debtor (BYJU’s) falls within the definition of ‘operational debt’ within section 5(21) of the Code. Hence, petition filed u/s 9 to initiate CIRP accepted.
Facts- The present petition is filed u/s. 9 of the Insolvency and Bankruptcy Code, 2016 r/w. Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules 2016, by The Board of Control for Cricket in India (‘Operational Creditor/Petitioner’) inter alia seeking to initiate Corporate In-solvency Resolution Professional Process against Think & Learn Private Limited (‘Corporate Debtor’/Respondent) for a default of total outstanding amount of Rs. 1,58,90,92,400/-.
Conclusion- As per the Agreement, the payment of the fees was liable to levying of GST, hence it is implied that the Sponsor Agreement licensed is in respect of the ‘services’, and the ‘rights fee’ for which the Operational Creditor is liable to be paid by the Corporate Debtor does fall within the definition of ‘Operational Debt’ within the meaning of Section 5(21) of the Code.
Accordingly, this Adjudicating Authority is of the considered opinion that there is no reason to deny the petition filed under section 9 of the IBC, 2016 by the Operational Creditor to initiate CIRP against the Corporate Debtor, since the existence of a debt and a default in the payment of debt is clearly established. Therefore, the instant Company Petition bearing CP (IB) No. 149/2023 is admitted against the Corporate Debtor and moratorium is declared in terms of Section 14 of the Code.
