NCLT Bengaluru Admits Byju’s K3 Education to Insolvency Over ₹1.76 Crore Unpaid Operational Debt to Kritikal Solutions
Pranav B Prem
The National Company Law Tribunal (NCLT), Bengaluru Bench, comprising Justice Sunil Kumar Aggarwal (Judicial Member) and Radhakrishna Sreepada (Technical Member), has admitted Byju’s K3 Education Pvt. Ltd., a subsidiary of the Byju’s group, to Corporate Insolvency Resolution Process (CIRP) over an unpaid operational debt of ₹1.76 crore owed to Kritikal Solutions Pvt. Ltd. The order was delivered on October 15, 2025, following a petition filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, by Kritikal Solutions Pvt. Ltd., an R&D and engineering services provider. The Tribunal also appointed Pankaj Kumar as the Interim Resolution Professional (IRP) to manage the insolvency proceedings.
Background
Kritikal Solutions, based in Delhi, entered into a Master Services Agreement (MSA) with Byju’s K3 Education in August 2020 to provide specialized R&D and AI-based engineering services. The agreement, effective from August 20, 2020, governed the terms of service and payment. According to the petitioner, Byju’s K3 availed the services between September and November 2022, for which three invoices were raised —
₹79,17,379 (dated September 14, 2022),
₹74,92,467 (dated October 12, 2022), and
₹37,74,453 (dated November 7, 2022).
Despite repeated follow-ups, a sum of ₹1,76,71,832 remained unpaid after adjusting minor part-payments. Kritikal Solutions issued a demand notice under Section 8 of the IBC on July 31, 2024, which was duly served on Byju’s K3 on August 5, 2024, but received no response.
Proceedings Before the Tribunal
Byju’s K3 did not file any reply or raise any dispute against the demand notice. The Tribunal observed that the operational creditor had complied with all procedural requirements, including filing the IRP’s consent in Form 2 and an affidavit under Section 9(3)(b) of the Code. Relying on the Supreme Court’s rulings in Macquarie Bank Ltd. v. Uttam Galva Metallics Ltd. (2023 SCC OnLine SC 1472) and Innoventive Industries Ltd. v. ICICI Bank (2018) 1 SCC 407, the Bench held that where debt and default are established and no pre-existing dispute exists, the petition must be admitted.
The Tribunal further noted:“Undisputed claims must not remain unpaid, as doing so would undermine commercial discipline.” It emphasized that the invoices corresponded to services rendered in the ordinary course of business and that the consideration was definite and quantifiable, qualifying as “operational debt” under Section 5(21) of the Code.
NCLT’s Findings and Directions
Finding that the debt was undisputed and the default clearly established, the Bench admitted the petition and ordered the commencement of the CIRP against Byju’s K3 Education Pvt. Ltd. The following directions were issued:
A moratorium under Section 14 of the IBC was imposed, restraining the institution or continuation of any suits or recovery proceedings against the corporate debtor.
Pankaj Kumar, bearing Registration No. IBBI/IPA-002/IP-N00532/2017-2018/11561, was appointed as Interim Resolution Professional (IRP).
The operational creditor (Kritikal Solutions) was directed to deposit ₹2 lakh with the IRP to meet public notice and claim-related expenses.
The IRP was directed to constitute the Committee of Creditors (CoC) and file a report within 30 days.
With the petition being allowed, Byju’s K3 Education Pvt. Ltd. stands admitted into insolvency proceedings, and a moratorium is now in effect. The matter is next listed for December 8, 2025, for further hearing and submission of the IRP’s progress report. “The silence of the corporate debtor in response to the statutory demand notice reinforces the presumption that the debt is undisputed,” the Bench concluded.
Appearance
For the Petitioner: Shri Sanjeet.P
Cause Title: Kritikal Solutions Pvt Ltd Vs Byju's K3 Education Pvt Ltd
Case No: CP (IB) No.29/BB/2025
Coram: Justice Sunil Kumar Aggarwal (Judicial Member), Radhakrishna Sreepada (Technical Member)
