Glas Trust moves NCLAT for stay over amendments in Akash’s AoA

New Delhi: GLAS Trust Company LLC, the US-based lender of debt-ridden firm Byju's, on Wednesday moved insolvency appellate tribunal NCLAT seeking a stay over amendments in the Articles of Association (AoA) of Aakash Educational Services.

A two-member bench comprising Justice Rakesh Kumar Jain and Jatindranath Swain issued notice to Aakash Educational Services, Resolution Professional of Think & Learn Pvt Ltd, which operates under Byju's brand.

The Chennai bench of the National Company Law Appellate Tribunal will hear the matter next week.

This new petition comes after private equity firm Blackstone-backed Singapore VII Topco on Monday withdrew its petition at the Bengaluru bench of NCLT against the amendment in the Articles of Association (AoA) of Aakash Educational Services.

During the proceedings of NCLAT, counsel appearing for Glas Trust contended the proposed amendments in AoA of Aakash would have an impact on the Corporate Insolvency Resolution Process (CIRP) going against Byju’s.

In Aakash, Think & Learn owns a 26 per cent stake while Byju Raveendran owns a 17 per cent stake.

An extraordinary general meeting (EGM) of Aakash Educational Services was scheduled to be held on November 20 to consider and approve alteration in the AoA, which was objected to by the minority shareholders.

However, on the same day, the Bengaluru bench of the NCLT stayed the resolution related to the amendment in the AoA of Aakash Educational Services, which allegedly sought to dilute the rights of minority shareholders, including Singapore VII Topco.

This was later challenged by Aakash before the High Court of Karnataka, which stayed the NCLT order. Later, the Supreme Court on November 29 prevented the amendment of AoA.

The Apex Court had directed Akash to approach the NCLAT within seven days and said the stay on implementing the EGM resolution over alteration in the AoA will remain in effect until the appellate tribunal hears the appeal.

The NCLT stayed the alteration of AOA over a petition filed by Singapore VII Topco I Pte Ltd and others under Sections 241, 242 and 244 of the Companies Act, which protects the rights of minority shareholders.

They had requested to direct Aakash Educational Services not to take up agenda item number 8 in the EGM, which was for "alternation" of the AoA.

The petitioners, including Singapore VII Topco I that holds 6.97 per cent of the stake in Aakash Institute, alleged that their rights and interests were being oppressed.