Glas Trust's Bid in the Minority Rights Lawsuit Opposed by the Aakash & Manipal Group
According to reports, Aakash Education Services Limited (AESL) and its majority investors have requested the National Company Law Tribunal (NCLT) to deny Glas Trust's request to join a lawsuit that aims to prevent the coaching chain from taking away the minority owners' reserved rights. The coaching division of struggling edtech BYJU'S, private equity (PE) firm Blackstone, and Ranjan Pai's Manipal Education & Medical Group presented the argument to the tribunal on February 12, according to a media report.
This occurred during the NCLT's consideration of a petition from Aakash's minority shareholders, who assert that the coaching chain is attempting to "remove their rights" and grant special rights to Manipal Education & Medical Group (which holds a 40% stake in AESL). However, since the insolvency-plagued edtech firm is a minority shareholder in Aakash, Glas Trust, which represents BYJU'S's US-based creditors, wishes to be a party to the case. As both parties (AESL and minority shareholders) had made their cases during the hearing, AESL's attorney reportedly asked the tribunal to postpone making a decision.
Argument Presented in Front of NCLT
The motion was denied by NCLT, which stated that Glas Trust had not yet presented its case. According to reports, Aakash's attorney, CK Nandakumar, contended that they waited until the session was almost over before saying, "No, no, we have something to say." They ought to have spoken sooner if they had anything to say. "They have nothing to do with me," he added. Why are they delaying the hearing on my vacate application if that is the case? Regarding this case, this individual is an absolute stranger.
According to reports, senior counsel Srinivasa Raghavan, speaking on behalf of Glas Trust, contended that BYJU's insolvency process would be impacted by the withdrawal of minority shareholder rights because the edtech firm would "lose control" of its lucrative affiliate (AESL). "The representative of Think & Learn (BYJU'S parent) must give their explicit assent to every board resolution.
Only with the presence of a Think & Learn representative can a quorum be created for each shareholders' meeting. According to reports, Raghavan stated before the NCLT, "Now, the entire set of articles that control Think & Learn over Aakash is being sought to be removed."
Further Argument on EGM
The extraordinary general meeting (EGM) held by Aakash in November 2024 was also questioned by Glas Trust's attorney at the hearing, who claimed that the resolution adopted there was void. Citing his justification, Raghavan argued that because the edtech was already in the insolvency process, the promoters of BYJU'S attended the EGM on behalf of Think & Learn rather than the resolution specialist. In response, the NCLT asked Aakash to describe how the resolution was approved despite an unauthorised individual attending the meeting.
Nitin Konde
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