Zee-Sony Merger: NCLAT Adjourns Hearing On Axis Finance, IDBI Bank Pleas To Dec. 15

The NCLAT on Wednesday adjourned the hearing to Dec. 15 on the two appeals filed by Axis Finance and IDBI Bank against the merger of Zee Entertainment and Culver Max Entertainment, formerly Sony Pictures Networks India.

The NCLAT bench headed by its Chairperson adjourned the hearing over the paucity of time and directed to list the matter on Dec. 15.

In the last hearing on Oct. 31, the matter was listed before a different bench, which transferred both petitions to the chairperson's bench.

The bench had opined that since the chairperson-led bench is already hearing an insolvency appeal filed by IDBI Bank against Zee Entertainment Enterprises Limited (ZEEL), it would be appropriate for the same bench to hear these petitions also.

The National Company Law Appellate Tribunal (NCLAT) did not issue a notice over the petitions filed by the private lender and the non-banking financial company (NBFC).

Both have challenged the Aug. 10, 2023, order of the Mumbai bench of the National Company Law Tribunal (NCLT), which approved the merger, paving the way for the creation of the country's largest media entity.

While approving the merger, the NCLT, in its order, dismissed some applications moved by financial institutions opposing the move, including those of IDBI Trusteeship, IDBI Bank, Axis Finance, JC Flowers Asset Reconstruction Co, and Imax Corp.

This was challenged by IDBI and Axis Finance before the NCLAT.

The NCLAT bench led by the chairperson is also hearing another petition filed by IDBI that has challenged an NCLT order, which on May 19 rejected the lender's plea to initiate insolvency proceedings against the media major.