IDBI Bank’s plea against Zee Entertainment dismissed by NCLT

19 May 2023 , 01:08 AM

IDBI Bank’s insolvency petition against Zee Entertainment Enterprises Ltd (ZEEL), which is promoted by Subhash Chandra, was rejected by the National Company Law Tribunal on Friday. This happened as the creditors who had brought the insolvency plea, IDBI Bank and Indian Performing Rights Society, have settled the matter with Zee out-of-court.

IDBI Bank, a government-owned lender, had submitted a petition for insolvency  against Zee Entertainment Enterprises Ltd (ZEEL) due to a default amounting to more than Rs 149 crore. 

ZEEL mentioned in a December 2022 filing that IDBI Bank, identifying itself as a financial creditor, filed the petition with the Mumbai bench of the National Company Law Tribunal (NCLT).

Prior to the tribunal’s ruling, Senior Counsel Zal Andhyarujina and Bindi Dave from the law firm Wadia Ghandy & Co., representing Zee Entertainment Enterprises Ltd (ZEEL) promoted by Subhash Chandra, contended that the insolvency petition cannot be admitted under Section 10A of the Insolvency & Bankruptcy Code, 2016. 

They argued that the suspension period encompasses the default date, thereby prohibiting the acceptance of any insolvency petition.

 

At around 1.04 PM, Zee Entertainment was trading at Rs 185.90, up by 0.41% against the previous close of Rs 185.15 on NSE. The counter touched an intraday high and low of Rs 189.60 and Rs 183.65 respectively.

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