Insolvency case: NCLAT turns down IDBI Bank appeal against ZEE

An appeal filed by IDBI Bank Limited against ZEE Entertainment has been dismissed by NCLAT, the media company has informed the exchanges.

IDBI Bank had filed an appeal before the NCLAT, Delhi, challenging the order passed by NCLT on May 19, 2023. The NCLAT had upheld that order passed by NCLT.

NCLAT had then posited that Zee should have been heard by NCLT before directing both exchanges to review the NOC for the Zee-Sony merger. 

IDBI Bank Limited also filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016) against ZEE Entertainment Enterprises Limited.

The petition was based on alleged default in financial obligations.

In December 2022, IDBI Bank filed an insolvency plea against the media conglomerate for initiating a corporate insolvency resolution process (CIRP).

The bank cited the debt service reserve agreement that it entered into with the company for the financial facility availed by Essel Group’s Siti Networks. IDBI Bank, Axis Finance, IndusInd Bank and many other creditors had approached the NCLT against the Zee-Sony merger. 

In January 2024, the Zee-Sony merger deal was terminated due to 'non-compliance with terms of agreement'.