Aakash Education Services Limited (AESL), along with its majority investors, has reportedly urged the National Company Law Tribunal (NCLT) to reject Glas Trust’s petition to become a party to a case that seeks to stop the coaching chain from removing the reserved rights of its minority shareholders.
As per Economic Times, the coaching arm of troubled edtech BYJU’S, along with private equity (PE) firm Blackstone and Ranjan Pai’s Manipal Education & Medical Group, made the contention before the tribunal on Wednesday (February 12).
The development came to pass while the NCLT was hearing a plea by Aakash’s minority shareholders, who claim that the coaching chain is trying to “remove their rights” and confer special rights on Manipal Education & Medical Group (which owns 40% stake in AESL).
On the other hand, Glas Trust, which represents the US-based creditors of BYJU’S, wants to be a party to the case as the insolvency plagued edtech startup is a minority shareholder in Aakash.
During the hearing, the counsel for AESL reportedly urged the tribunal to reserve its order in the matter as both parties (AESL and minority shareholders) had presented their arguments. However, NCLT refused to entertain the request, saying that Glas Trust is yet to implead its case.
“They waited for the hearing to be virtually concluded, and at that stage, they come forward and say, ‘no, no, we have something to say’. If they had something to say, they should have said it earlier,” Aakash’s counsel CK Nandakumar reportedly argued.
He further contended, “They have no nexus with me. If that is the case, then why are they stalling the hearing on my vacating application … Here is a complete stranger as far as this case is concerned”.
Meanwhile, senior advocate Srinivasa Raghavan, representing Glas Trust, reportedly argued that the removal of minority shareholder rights could impact BYJU’S insolvency process as the edtech startup would “lose control” of its profitable affiliate (AESL).
“Every board resolution requires the affirmative consent of Think & Learn’s (BYJU’S parent) representative. For every shareholders’ meeting, a quorum can only be established if a Think & Learn representative is present. Now, this whole series of articles by which control of Think & Learn is there over Aakash is sought to be removed,” Raghavan reportedly said before NCLT.
The hearing also saw Glas Trust’s counsel question the extraordinary general meeting (EGM) called by Aakash in November 2024, saying that the resolution passed at the meeting was invalid. Citing his rationale, Raghavan contended that promoters of BYJU’S attended the EGM, on behalf of Think & Learn, instead of the resolution professional as the edtech was already under insolvency process.
Responding to this, the NCLT directed Aakash to explain how the resolution was passed with an unauthorised person in attendance at the meeting.
“I am also joining my friends in opposing this request for impleadment. If Think & Learn may have legitimacy, we have filed an application to implead Think & Learn, but Glas Trust may not be a proper party,” senior advocate Niranjan Reddy, representing the minority investors of Aakash, reportedly said.
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