NCLAT postpones the hearing on the Zee-Sony merger until October 31

16 Oct 2023 , 10:44 AM

The National Company Law Tribunal (NCLT) judgement authorizing the Zee-Sony merger was challenged by Axis Finance and IDBI Bank in appeals, however, the NCLAT declined to issue a notice in those cases on October 13.

The NCLAT postponed the case until October 31 and noted that ZEEL could submit a response if necessary.

On October 12, ZEEL’s lawyers Mukul Rohatgi and Arun Kathpalia urged the tribunal not to pass any orders in the case as Axis Finance does not have the locus to file such a plea. They also opposed to the adjournment because the facts of IDBI’s case were different.

However, the appellate tribunal deferred the hearing of the case without issuing notice.

The National Company Law Tribunal (NCLT) had on August 10 approved the merger of Zee Entertainment and Sony Pictures Networks India (SPNI), paving the way for the creation of a $10-billion media giant in the country.

The panel also overruled every opposition to the merger.

NCLT initially held off on rendering a decision regarding the union of Zed Entertainment Enterprises and Culver Max Entertainment (formerly SPNI).

After creditors including Axis Finance, JC Flower Asset Reconstruction Co, IDBI Bank, Imax Corp, and IDBI Trusteeship expressed concerns about the scheme, the bench made up of HV Subba Rao and Madhu Sinha reserved the judgement.

Zed Entertainment and Sony Pictures agreed to integrate their businesses in December 2021. After receiving the required approvals from the National Stock Exchange (NSE), Bombay Stock Exchange (BSE), and other regulatory bodies like the Competition Commission of India (CCI) and the Securities and Exchange Board of India (SEBI), both companies then approached the tribunal to request permission for the merger.

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