NCLAT Will Continue Hearings On Challenges To Zee-Sony Merger
In January, Sony terminated the $10-billion merger, citing the failure of the Zee conglomerate to meet certain conditions.
The National Company Law Appellate Tribunal clarified on Monday that it would continue to hear cases related to the Zee-Sony merger, regardless of the ongoing proceedings in the NCLT. The decision on whether the NCLAT would hear these cases had been pending since April 4.
Currently, the NCLT is handling cases concerning the implementation of the merger between Zee Entertainment Enterprises Ltd. and Sony Group Corp.'s Indian subsidiary.
The pleas against the merger were filed by IDBI Bank Ltd. and Axis Finance Ltd. In a recent hearing, both banks requested the NCLAT adjourn the case until the National Company Law Tribunal decided on Zee's plea to enforce the merger. However, Zee argued that the pending plea in the NCLT should not affect the ongoing case and urged the NCLAT to continue hearing it.
In January, Sony officially terminated the $10-billion merger, citing the failure of the Zee conglomerate to meet certain conditions, such as the alleged financial mismanagement and recovering dues from related parties.
However, IDBI Bank and Axis Finance had already filed pleas against the merger before its cancellation, objecting to the approval granted by the NCLT in August 2023. The announcement of the merger's cancellation casts uncertainty over the future of these cases.
In response, a Zee shareholder, Mad Men Film Ventures, appealed to both Zee and Sony to proceed with the approved merger, which had received approval from the NCLT last August.
