NCLAT Allows Aakash to Proceed with EGM and Rights Issue Despite Byju’s Insolvency

The National Company Law Appellate Tribunal (NCLAT) dismissed a plea seeking an interim injunction to restrain Aakash Educational Services from convening its extraordinary general meeting (EGM) and proceeding with a rights issue.

The Bench held that Byju’s ongoing corporate insolvency resolution process (CIRP) does not justify interference in Aakash’s independent management decisions or its capital-raising measures.

Observing that the applicant failed to establish any urgency or legal basis for emergency relief, the Tribunal permitted Aakash to continue its proposed corporate actions. 

NCLAT clarified that the insolvency of the parent company, Byju’s, cannot extend to govern or restrict the operations of its functioning subsidiary.

[Glas Trust v Aakash Education Services Limited]