CHENNAI: The Supreme Court on Monday dismissed the civil appeal filed by GLAS Trust Company LLC -- a creditor of Think & Learn Pvt Ltd, parent company of BYJU’s -- and Shailendra Ajmera, Partner at Ernst & Young LLP (EY) and Resolution Professional (RP) for BYJU’S, challenging the recent order of the National Company Law Appellate Tribunal (NCLAT) Chennai.
The dismissal of the appeal upholds the NCLAT’s October 28 ruling, which had rejected the application filed by GLAS seeking to stop the rights issue of Aakash Educational Services Limited (AESL). The court has now allowed AESL to proceed with its planned rights issue.
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 Supreme Court’s dismissal of the civil appeals. This judgment reaffirms the strength of our position and upholds the integrity of the legal process.”
The dispute stems from insolvency proceedings initiated against TLPL before the NCLT, Bengaluru. AESL announced a rights issue to raise working capital, which was opposed by GLAS Trust and the RP.
On October 17, the NCLT Bengaluru refused to grant interim relief to the RP. After this, GLAS filed an application in NCLAT, Chennai seeking to stop the rights issue.
Following the NCLAT’s green signal, AESL had convened its extraordinary general meeting (EGM) on October 29 to approve the proposal to increase its authorised share capital. The meeting was attended by all 11 shareholders, including the RP of BYJU’s.
During the EGM, AESL chairman Shailesh Haribhakti reiterated that the rights issue and capital infusion are essential for the company’s ongoing operations and sustainability. “The rights issue is the only way that Aakash can continue its ongoing operations, which ultimately protects TLPL’s investment,” he said.
