Oppo to NCLT: Byju’s Didn’t Pay Rs 13 Crore for Pre-Installing Its App on Oppo Phones!

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Mobile phone manufacturer Oppo on Thursday (June 27, 2024) informed the National Company Law Tribunal (NCLT) that edtech firm Byju’s owes it Rs 13 crore for pre-installing Byju’s mobile app on Oppo phones.

The NCLT in Bengaluru, while adjourning the plea to July 3, 2024, mentioned that it would call the day “Byju’s day” due to nearly 10 petitions scheduled for hearing on that date.

Oppo requested urgent orders from the NCLT, alleging that Byju’s promoters were “absconding” and no longer residing in India.

According to Moneycontrol, Oppo said Byju’s had agreed to preinstall its apps on Oppo-manufactured phones to reach a broader audience but failed to pay the agreed amount.

Oppo claimed that Byju’s has acknowledged its debt, making a clear case for referring the edtech company to insolvency proceedings.

Senior advocate Pramod Nair strongly objected to Oppo’s lawyer using the term ‘absconding’ to describe Byju’s promoters. He requested an adjournment, noting that several other cases involving Byju’s are scheduled for hearing on July 3, 2024.

On June 26, 2024, the NCLT was informed that Byju’s had resolved a case with France-based Teleperformance Business Services, and the petition is likely to be withdrawn.

However, on the same day, another business services provider, iEnergizer, filed a fresh insolvency plea. Thus, the number of insolvency petitions against Byju’s remains unchanged.

Byju’s is currently facing financial challenges after the NCLT prohibited it from raising funds through a second rights issue. Byju’s has contested this decision in the Karnataka High Court, although no stay order has been issued in the matter thus far.

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On June 12, the NCLT in Bengaluru ordered Byju’s to maintain the current status of existing shareholders and their shareholding.

The tribunal also instructed Byju’s to submit comprehensive information about the relevant escrow accounts, covering the period from the rights issue’s inception on January 29, 2024 to June 12, 2024, within 10 days.

Additionally, Byju’s was directed to provide detailed records of the share allotments made on March 2, before any increase in authorized share capital.

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