Supreme Court Upholds Aakash's EGM Amid Glas Trust Challenge

The Supreme Court has dismissed a legal challenge by Glas Trust against Aakash Educational Services Ltd (AESL) pertaining to the latter's rights issue. This decision comes after the National Company Law Appellate Tribunal (NCLAT) permitted AESL's Extraordinary General Meeting (EGM), a move contested by the US-based creditor.

AESL, recognized for advancing academic excellence in India, welcomed the ruling. Sanjay Garg, AESL's Head-Legal, emphasized the decision's significance in upholding the integrity of legal processes and reaffirming the company's educational mission, despite Glas Trust's objections centered on share valuation concerns.

The NCLAT previously acknowledged that while insolvency proceedings aim to maximize asset values, they do not mandate companies to compromise their interests for the benefit of another shareholder entity. This ruling underscores AESL's autonomy in managing its growth strategies independently.