SC dismisses GLAS, BYJU’S RP plea; clears rights issue of Aakash

The Supreme Court of India has dismissed the civil appeals filed by GLAS Trust Company LLC, a creditor of Think & Learn Pvt. Ltd. (BYJU’S), and Shailendra Ajmera, Partner at Ernst & Young LLP and Resolution Professional (RP) for BYJU’S, challenging the NCLAT Chennai’s recent order that had allowed Aakash Educational Services Ltd. (AESL) to proceed with its rights issue.

The dismissal upholds the NCLAT’s October 28, 2025 ruling, which rejected GLAS’s plea to halt AESL’s fund-raising plan. With the apex court’s order, AESL has received a clear go-ahead to move ahead with its proposed rights issue.

Sanjay Garg, Head–Legal at AESL, welcomed the verdict, saying, “Aakash Educational Services Limited has a proud legacy of empowering students for over three decades. The Supreme Court’s dismissal reaffirms the strength of our position and upholds the integrity of the legal process. We remain committed to delivering quality education with trust and excellence.”

He further added that the decision confirms AESL’s actions are lawful and in the best interests of stakeholders. “It is unfortunate that GLAS and the RP are pursuing obstructionist litigation that could jeopardize the future of 3.7 lakh students and 10,000 employees of AESL,” he said.

The dispute arose from insolvency proceedings against BYJU’S parent, Think & Learn Pvt. Ltd., before the NCLT Bengaluru, where Ajmera was appointed as RP. AESL — in which BYJU’S holds about 25% — announced a rights issue to raise working capital and sustain operations. GLAS and the RP opposed the move, seeking to restrain Aakash Educational Services board from proceeding.

On October 17, the NCLT Bengaluru refused to grant interim relief to the RP, holding that AESL’s board was empowered to raise capital in the company’s interest. GLAS then moved the NCLAT Chennai, which too dismissed its application, observing that AESL could not be compelled to sacrifice its commercial interests merely because one of its shareholders was under insolvency.

Hearing arguments from Senior Advocates Aryama Sundaram (for GLAS) and P.S. Patwalia (for the RP), the Supreme Court upheld the NCLAT’s view. AESL was represented by Senior Advocates Gopal Subramanium, Abhishek Singhvi, Arun Kathpalia, and Dhyan Chinappa.

Following the NCLAT’s order, AESL convened its Extraordinary General Meeting (EGM) on October 29, where all 11 shareholders, including the RP, were present. Despite the RP’s objections, shareholders approved the proposal to increase authorised share capital.

AESL Chairman Shailesh Vishnubhai Haribhakti said the rights issue is vital for sustaining operations. “In the interest of Think & Learn Pvt. Ltd., the rights issue is the only way Aakash can continue its ongoing operations, ultimately protecting TLPL’s investment,” he stated.

With the Supreme Court’s dismissal of the appeals, AESL can now proceed with its capital raise, marking a significant legal win that clears the path for the company’s growth and operational continuity.

Also See: NCLT rejects Byju’s plea to stay rights issue of Aakash Educational Services