SC upholds NCLAT's decision giving go-ahead to Aakash for EGM on rights issue

New Delhi, Nov 3 (PTI) The Supreme Court on Monday dismissed a plea filed by Glas Trust, the US-based largest creditor of Think & Learn Pvt Ltd, challenging an order of the NCLAT that allowed the Aakash Educational Services Ltd (AESL) to hold its Extraordinary General Meeting (EGM) for a rights issue.

A bench of Justices P S Narasimha and A S Chandurkar upheld the October 28 order of the National Company Law Appellate Tribunal (NCLAT).

Reacting to the order, Sanjay Garg, Head-Legal of AESL, said, "Akash Educational Services Limited has a proud legacy of empowering students and shaping India's academic excellence for over three decades.

"We welcome the Hon'ble Supreme Court's dismissal of the Civil Appeals filed by GLAS Trust and the RP, which sought to misuse insolvency proceedings to disrupt this legacy. This judgment reaffirms the strength of our position and upholds the integrity of the legal process. Aakash remains committed to its mission of delivering quality education with trust and excellence," he said.

A two-member Chennai-based bench of the NCLAT had said it "hardly finds a reason to hold that Glas Trust has established a prima facie case for granting an injunction".

Rejecting the plea of Glas Trust, the National Company Law Appellate Tribunal had said the Insolvency & Bankruptcy Code (IBC) is a "blood thirsty" law that "authorises interference in the internal affairs of a company in which a Corporate Debtor (CD) may hold some shares".

Glas Trust, which owns over 90 per cent of the voting shares in the CoC of TLPL, had submitted that if the share capital of AESL is allowed to be increased, it would not only reduce the valuation of shares of TLPL, but also reduce the percentage of shares.

TLPL owns the insolvency-bound edtech firm Byju's.

Rejecting Glas Trust's petition, the NCLAT said it is true that the IBC aims to maximise the asset value of the company as TLPL is going through insolvency processes but "it has not sanctioned the idea that every company in which the CD has a shareholding should sacrifice its own interest to stay, grow and sustain itself commercially for the benefit of the CD".

Glas Trust, which owns over 90 per cent voting rights in the committee of creditors of Byju's, had filed an application before the appellate tribunal against an earlier order passed by the Bengaluru bench of the NCLT.

Moreover, in this matter, TLPL has also moved the NCLAT. It had filed an appeal against the NCLT order, which last week declined its plea to restrain AESL from convening its EGM for the rights issue.

Glas Trust has sought a stay to protect the interest of TLPL, which owns around 25 per cent of the stake in AESL and said that after the right issue, the stake of the insolvency-bound edtech firm will be diluted.

On October 17, 2025, the Bengaluru-based bench of the NCLT declined to grant any interim relief on the second plea filed by the insolvency-bound edtech firm Byju's to stay the EGM scheduled for October 29, 2025. PTI PKS RHL