In a new twist to the Byju’s-Aakash ownership dispute, US-based lender Glas Trust Company and Byju’s resolution professional have approached the National Company Law Appellate Tribunal (NCLAT) seeking to block Aakash Educational Services Ltd’s (AESL) Extraordinary General Meeting (EGM) scheduled for October 29. The petition aims to secure an interim stay on the EGM, which reportedly plans to approve a rights issue that could dilute Byju’s ownership stake in the test-prep subsidiary.

The lenders allege that the proposed rights issue was initiated without proper consent and violates the moratorium imposed under India’s insolvency framework. They argue that the move could unfairly transfer control of Aakash away from Think & Learn Pvt. Ltd., the parent company of Byju’s, which is currently undergoing insolvency proceedings.

According to sources familiar with the matter, the lenders are seeking NCLAT’s intervention to maintain the status quo until the resolution process is completed. The petition also accuses Aakash’s management of acting independently without approval from the court-appointed resolution professional.

Aakash, however, maintains that the rights issue is a legitimate step to infuse fresh capital into the company and ensure business continuity amid the ongoing financial turmoil surrounding Byju’s. The development underscores the growing tension between Byju’s lenders and its group companies, as multiple legal and financial challenges continue to threaten the once-dominant edtech firm’s restructuring efforts.

The NCLAT is expected to review the petition and decide whether to stay the EGM or allow it to proceed as scheduled. The outcome could significantly impact Byju’s hold over one of its most valuable assets and shape the next phase of its ongoing corporate restructuring.