Surfer Technologies resolves its bankruptcy case with Byju's

Surfer Technologies informed the National Company Law Tribunal's (NCLT) Bengaluru bench on Wednesday that it had reached a friendly settlement with Byju's and would withdraw its insolvency suit against the edtech company.

The NCLT requested on Monday that both parties submit an official application to the tribunal, as the order concerning the insolvency had been reserved a few weeks prior.

In accordance with Section 9 of the Insolvency and Bankruptcy Code, 2016, which permits an operational creditor to start insolvency proceedings against a firm due to a default, Surfer Technologies submitted an application on February 7th. The edtech company has over ₹2 crore in debt, according to its counsel, who also stated that the company was notified on December 8, 2023, before the filing of the insolvency application. 

In a previous hearing, the attorney claimed that they were the suppliers of digital marketing. They would forward Byju's leads, and an invoice wouldn't be raised until the lead was verified. They haven't been paid yet.

Byju was fined ₹20,000 by the NCLT on April 24th for the delay in responding to Surfer Technologies' plea. Judges K Biswal and Manoj Kumar Dubey led a bench that declared that a response would only be taken into consideration if the cost was deposited. The bench has scheduled a follow-up hearing for May 1st.

Byju's reported to the NCLT on June 26 that it had negotiated a settlement with Teleperformance Business Services, a French creditor, for which it owed ₹5 crore. The business had claimed that Byju's had stopped making payments as of April 14, 2023, but following the settlement, it dropped its bankruptcy claim.

Investors General Atlantic and MIH Edtech have filed a case alleging mismanagement and oppression against Byju's, which is currently being heard by the NCLT bench. On July 24, however, a new hearing was scheduled for this case.