MUMBAI: The National Company Law Appellate Tribunal on Friday stayed the order directing initiation of insolvency proceedings against Zee Entertainment Enterprises Ltd (ZEEL).
NCLAT also issued notice to private sector lender IndusInd Bank and the final hearing of the case will now be heard on March 29.
The order comes as a big relief to the Indian media major, and follows on from ZEE MD & CEO Punit Goenka’s filing an appeal before NCLAT on Thursday seeking relief against the order passed by the Mumbai bench of the National Company Law Tribunal (NCLT).
Hailing the NCLAT order, Goenka said, “Remain committed towards protecting the interest of all stakeholders. Our focus continues to be on the timely completion of the proposed merger.”
Hindu Businessline reports that at Friday’s hearing before NCLAT, senior advocate Mukul Rohatgi, who appeared for Punit Goenka, argued that Zee is corporate guarantor and not the principal debtor which is Siti Networks as per the agreement. Rohatgi further stated that Zee had given a special guarantee not for Siti’s debt, but only to maintain a shortfall in only one tranche of interest repayment account.
Rohatgi highlighted ZEE was undergoing amalgamation with Culver Max Entertainment Pvt. Ltd (aka Sony Pictures Networks India) and the merger will get stuck because of this even as the media firm had all the necessary approvals.
He said that demand of Rs 83 crore made by IndusInd Bank is the principal amount loaned to Siti and Zee never issued a guarantee for the loan.
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