Zee Entertainment Enterprises Limited (ZEEL), pursuant to Culver Max Entertainment Private Limited (Sony) stepping away from the proposed merger, had filed an application before the NCLT, seeking implementation of the composite scheme of arrangement by the NCLT. This was in parallel to the ongoing arbitration proceedings before the Singapore International Arbitration Centre (SIAC).
Earlier in February, 2024, Sony had appealed before the arbitrator at SIAC to seek an injunction from ZEEL moving the NCLT, since the arbitration proceedings in relation to the non-consummation of the merger and related damages were already being heard at SIAC. The arbitrator had refused to provide an injunction, stating that moving the NCLT for consummation of the merger was within the statutory system, and the arbitrator had no jurisdiction to pass an order barring ZEEL from approaching the NCLT.
Other than the proceedings before SIAC and the NCLT, ZEEL is currently also embroiled in other legal matters, including the fund diversion investigation by SEBI.
Furthermore, a plea by India bulls Housing Finance Limited (IHFL) was accepted by the NCLT, Delhi against Mr. Subhash Chandra, the chairman emeritus of ZEEL. Mr. Chandra was a personal guarantor for a loan received by Vivek Infracon. Vivek Infracon defaulted on making payments to the tune of INR 170 crores in 2022, and Mr. Chandra and IHFL entered into talks to reach a settlement. However, failure on the settlement front prompted IHFL to file with the NCLT for insolvency against Mr. Chandra, as he was a personal guarantor for the loan. While a copy of the NCLT order is awaited, it has been reported that CIRP proceedings have been initiated against Mr. Chandra, and Mr. Chandra is now under moratorium, as applicable under the Insolvency and Bankruptcy Code, 2016.
Originally published 08 May 2024
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