The Supreme Court on Monday dismissed a plea filed by Glas Trust, the largest US-based creditor of Think & Learn Pvt Ltd (TLPL), challenging the National Company Law Appellate Tribunal’s (NCLAT) order that permitted 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 NCLAT, which had refused to grant an injunction sought by Glas Trust against AESL’s proposed rights issue.
In its October 28 order, a two-member bench of the Chennai-based NCLAT had observed that it “hardly finds a reason to hold that Glas Trust has established a prima facie case for granting an injunction.” The tribunal emphasised that while the Insolvency and Bankruptcy Code (IBC) empowers interference in corporate affairs, it is not meant to obstruct legitimate business operations.
Calling the IBC a “blood-thirsty law” that must not be misused, the NCLAT had stated:
“The IBC authorises interference in the internal affairs of a company in which a Corporate Debtor may hold some shares, but it has not sanctioned the idea that every company in which the Corporate Debtor has a shareholding should sacrifice its own interest to stay, grow, and sustain itself commercially for the benefit of the Corporate Debtor.”
Glas Trust, which holds over 90% voting rights in the Committee of Creditors (CoC) of TLPL — the parent entity of the crisis-hit edtech firm Byju’s — had argued that allowing AESL’s rights issue would dilute TLPL’s 25% stake in Aakash and reduce its valuation, thereby harming creditors’ interests.
The trust contended that since TLPL is undergoing insolvency proceedings, any dilution of its shareholding in Aakash would negatively impact the resolution value of the debtor company.
However, both the NCLT Bengaluru Bench and later the NCLAT dismissed these concerns. On October 17, 2025, the NCLT declined interim relief to TLPL and Glas Trust, refusing to stay AESL’s proposed EGM scheduled for October 29, 2025.
Following the Supreme Court’s decision, Sanjay Garg, Head-Legal of Aakash Educational Services Ltd, welcomed the ruling, stating:
“Aakash 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.”
Think & Learn Pvt Ltd, the parent company of Byju’s, is currently undergoing insolvency proceedings under the IBC. Glas Trust, acting as one of its major creditors, had been attempting to block AESL’s capital-raising exercise on the ground that it would indirectly diminish the value of TLPL’s assets.
However, with the Supreme Court now affirming the NCLAT’s stance, Aakash Educational Services Ltd is legally cleared to proceed with its rights issue, marking a significant setback for Glas Trust and Byju’s creditors who had sought to halt the process.
