NCLT Rejects Byju's Plea Against AESL's Rights Issue

The National Company Law Tribunal (NCLT) has declined to grant interim relief to Byju's, an edtech firm undergoing insolvency, in a case against Aakash Educational Services Ltd (AESL). The tribunal rejected Byju's plea to halt AESL's upcoming extraordinary general meeting (EGM) on October 29, 2025, intended for a rights issue.

Byju's sought to prevent the EGM, arguing it would reduce its shareholding in AESL from 25% to less than 5%. The tribunal, however, stated that halting the rights issue does not align with company independence. This is the second petition on the same issue, and the NCLT emphasized that Byju's plea showed no legal merit.

The tribunal scheduled further hearings for November 12, 2025, amidst a backdrop of insolvency concerns for Byju's and financial instability for AESL. Byju's argued the rights issue undermines its valuable shareholding in AESL. Meanwhile, the Committee of Creditors supports Byju's petition, emphasizing the significance of protecting creditors' rights.