regular-article-logo Tuesday, 06 June 2023

IPRS withdraws Zee insolvency plea

Earlier this January, IPRS moved NCLT against Zee claiming default of Rs 211.41 crore

PTI New Delhi Published 07.03.23, 01:02 AM
Representational image

Representational image File picture

Leading broadcaster Zee Entertainment Enterprises Ltd on Monday said it has “mutually” settled disputes with the Indian Performing Rights Society (IPRS) and the insolvency petition filed against it by the latter has been withdrawn before the NCLAT.

“The Company and IPRS have mutually entered into the settlement agreement today (Monday) on such agreed terms by which all disputes and claims have been settled between the Company and IPRS and accordingly IPRS has agreed to withdraw the aforesaid insolvency petition filed by them,” a regulatory filing by Zee said.


Though Zee has not shared the terms and conditions of settlement but said it is “as per the settlement agreement entered into by the company and IPRS. There is no penalty paid and no material impact on the financial position of the Company,” it said.

Earlier this January, IPRS moved the insolvency tribunal NCLT against Zee claiming a default of Rs 211.41 crore.

IPRS, which is a non-profit society comprising authors, composers and music publishers, filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC) 2016, as an operational creditor claiming dues towards royalty payable for utilisation of “literary and musical works”.

Earlier on February 24, the National Company Law Appellate Tribunal (NCLAT) stayed the insolvency proceedings initiated against Zee.

Admitting a petition filed by Zee managing director and chief executive Punit Goenka, the appellate tribunal issued notices to private sector lender IndusInd Bank and the interim resolution professional directing them to file a reply in two weeks.

On February 22, the Mumbai bench of the National Company Law Tribunal (NCLT) had admitted a plea filed by IndusInd Bank to initiate insolvency proceedings.

It had also appointed an interim resolution professional after suspending the board.

The NCLAT order was a major reprieve for Zee, which is merging with rival Culver Max Entertainment, formerly known as Sony Pictures Networks India, creating India’’s biggest media empire.

The company has received necessary approvals from shareholders, creditors, bourses and CCI and a final go-ahead from the NCLT is awaited.

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