TLPL’s Insolvency No Bar To Akash’s Share Capital Increase: NCLAT Affirms Corporate Separateness [Read Order]
Holding over 99% voting share in TLPL’s Committee of Creditors, contended that the proposed increase in Aakash’s share capital would substantially dilute TLPL’s stake and diminish the value of the corporate debtor’s assets during CIRP
![TLPL’s Insolvency No Bar To Akash’s Share Capital Increase: NCLAT Affirms Corporate Separateness [Read Order]](https://images.taxscan.in/h-upload/2026/01/28/2122232-tlpls-insolvency-no-bar-to-akashs-share-capital-increase-taxscan.webp "TLPL’s Insolvency No Bar To Akash’s Share Capital Increase: NCLAT Affirms Corporate Separateness [Read Order]")
In a recent ruling National Company Law Tribunal (NCLAT) has held that the insolvency of Think and Learn Pvt. Ltd( TLPL) does not restrict Akash Education Services Ltd from increasing its share capital, reaffirming that a subsidiary company retains its independent corporate identity despite its holding company undergoing insolvency proceedings The appeal arose from I.A. No. 1514...
In a recent ruling National Company Law Tribunal (NCLAT) has held that the insolvency of Think and Learn Pvt. Ltd( TLPL) does not restrict Akash Education Services Ltd from increasing its share capital, reaffirming that a subsidiary company retains its independent corporate identity despite its holding company undergoing insolvency proceedings
The appeal arose from I.A. No. 1514 of 2025 filed in the Company Appeal, wherein GLAS Trust Company LLC, the principal financial creditor of TLPL, is against the extraordinary general meeting proposed by Akash to increase its authorised share capital and from taking steps that could dilute TLPL's shareholding.
The appellant GLAS trust argued that TLPL, which holds approximately 25.41% shareholding in Akash Educational Services Limited, is presently undergoing CIRP. GLAS trust holding over 99% voting share in TLPLs CoC, had pointed out that the proposed increase in Aakash's share capital would substantially dilute TLPLs stake and diminish the value of the corporate debtors' assets during CIRP.
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It was also contended that the respondent Aakash's action violated existing status quo orders passed in operation and mismanagement proceedings under the Companies Act.
The tribunal noted that the proposed capital raise was through the right issue, and the purpose of the insolvency and bankruptcy code is to keep the insolvent company running, not to paralyse or commercially stifle other companies in which it holds shares.
It was also noted that blocking akash from raising funds could damage its business and also affect the interests of its other shareholders.
The bench Justice N. Seshasayee (judicial member ), Mr. Jatindranath Swain (technical member), GLAS Trust failed to establish a prima facie case, irreparable injury, or balance of convenience, the NCLAT dismissed the interim application and allowed Aakash Educational Services Limited to proceed with its EGM and proposed increase in share capital.Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
