regular-article-logo Monday, 04 December 2023

National Company Law Appellate Tribunal nixes Zee insolvency case

IndusInd Bank had filed plea claiming that media and entertainment firm defaulted on a sum of Rs 83.08 crore

Our Special Correspondent Mumbai Published 04.07.23, 04:40 AM
Representational image.

Representational image. File photo

The National Company Law Appellate Tribunal (NCLAT) on Monday disposed of the appeal filed by Zee Entertainment Enterprises promoters after the media major reached a settlement with IndusInd Bank following payment of all dues to the financial creditor.

A joint application was moved by Punit Goenka, managing director and CEO of Zee Entertainment Enterprises Ltd, and IndusInd Bank bringing on record the settlement agreement dated March 29, 2023, reached between the financial creditor and the media and entertainment firm.


Counsel appearing for the parties submitted that as per the settlement agreement, all payments have been made before June 30, 2023. They also requested to close the corporate insolvency resolution process against Zee.

On this, a two-member NCLAT bench comprising chairperson Justice Ashok Bhushan and member Barun Mitra said: “Given the settlement agreement between the parties nothing survives to be decided in the appeal.”

“Impugned order dated 22.02.2023 (February 22) is set aside. CIRP against the Corporate Debtor is closed,” it said further.

On February 22, the Mumbai bench of the National Company Law Tribunal directed to initiate CIRP against Zee and appointed an interim resolution professional suspending the board. However, this was immediately stayed by the NCLAT on February 24 over the plea moved by Goenka.

IndusInd Bank had filed the plea claiming that the media and entertainment firm defaulted on a sum of Rs 83.08 crore. The matter pertained to a default in payments by Essel Group’s multisystem operator arm Siti Networks. Zee was a guarantor to the loans taken by Siti Networks.

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