ZEE Moves Petition In NCLT Seeking Dismissal Of IndusInd Bank's Insolvency Plea

IndusInd Bank had moved NCLT against the media and entertainment company claiming default of Rs 83.08 crore

ZEE has claimed that the petition by the private sector lender is an “act in breach of the orders dated February 25, 2021 and December 3, 2021 passed by the Delhi High Court". Image: Getty

New Delhi: Zee Entertainment Enterprise (ZEE) has moved a petition before the National Company Law Tribunal (NCLT) requesting dismissal of the plea filed by IndusInd Bank against the company.

IndusInd Bank had moved NCLT against the media and entertainment company claiming default of Rs 83.08 crore. The petition, to begin insolvency proceedings against ZEE, has been filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), according to a report by PTI.

ZEE, in a statement to the regulator, said, “The company has on February 21, 2022 filed an interlocutory application before the NCLT’s Mumbai Bench for quashing IndusInd Bank’s petition under Section 7 of the Insolvency and Bankruptcy Code, 2016.”

The media firm has claimed that the petition by the private sector lender is an “act in breach/violation of the orders dated February 25, 2021 and December 3, 2021 passed by the Delhi High Court”.

Earlier this month, while sharing the details, ZEE had said it is a party to the Debt Service Reserve Account Guarantee Agreement (DSRA Guarantee Agreement) and entered into agreement with IndusInd Bank for the term-loan facility advanced to another Essel Group firm Siti Networks. Siti Networks, formerly known as Wire and Wireless Ltd, is a multi-system operator promoted by media baron Subhash Chandra-led Essel Group.

According to ZEE, “the issue of the company’s alleged default under the DSRA Guarantee Agreement, is sub-judice before the Delhi High Court” in a suit filed by the company against IndusInd Bank.

“Filing of the said C1RP Application is in breach of the order dated 25th February 2021 as modified by the order of December 3, 2021 passed in the said suit,” it said, adding “the company will therefore be adopting appropriate legal steps in that regard”.

On December 22 last year, ZEE announced its merger with Sony Pictures Networks India after signing definitive agreements. According to the deal, Sony would invest $1.575 billion and hold 52.93 per cent stake in the merged entity and Zee the remaining 47.07 per cent.