NCLAT Allows Aakash Educational's Rights Issue Amid Glas Trust Opposition

The National Company Law Appellate Tribunal (NCLAT) has authorized Aakash Educational Services Ltd (AESL) to go ahead with its rights issue, dismissing a petition from Glas Trust, the primary creditor of Think & Learn Pvt Ltd (TLPL). The decision allows AESL to raise crucial funds despite Glas Trust's concerns over share devaluation.

NCLAT emphasized that the Insolvency & Bankruptcy Code (IBC) allows intervention in company affairs but does not mandate sacrificing a company's growth for a shareholder's benefit. Glas Trust, holding a 90% voting stake in TLPL's creditors' committee, argued the rights issue would dilute their shares further.

The tribunal’s ruling highlights the importance of sustaining company growth to maximize asset value, even in insolvency scenarios. Meanwhile, Aakash continues its operations independently, with its Extraordinary General Meeting scheduled for October 29, 2025, where shareholders will decide on the proposed rights issue.