Zee approaches NCLAT to challenge NCLT order in Invesco case

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Zee Entertainment Enterprises Ltd approached the National Company Law Appellate Tribunal (NCLAT) on October 6, in a bid to stay the NCLT order which sought its reply on a plea moved by shareholder Invesco Developing Market Funds.

The NCLT had, a day earlier, directed Zee to file a reply by October 7 on Invesco's plea seeking a legal order for an extraordinary general meeting (EGM).

A spokesperson of Zee has confirmed that the company has approached the appellate tribunal.

"The Company has moved to National Company Law Appellate Tribunal (NCLAT) in accordance with the due process available under the law. The Company has also filed a suit in Bombay High Court to declare that the requisition notice sent by Invesco Developing Markets Fund and OFI Global China Fund LLC is invalid," the spokesperson said.

Zee, through its plea before the NCLAT, has sought more time to reply to Invesco's plea before the NCLT, CNBC TV 18 reported.

The proceedings related to Invesco's plea should be stayed till the NCLAT decides on the matter, Zee has stated in its appeal, according to the report.

The plea could be taken up for hearing by the NCLAT on October 7, sources told the news channel.

NCLAT likely to hear @ZEECorporate's petition tomorrow i.e. October 7, sources tell CNBC-TV18.

According to sources, Zee Ent is also likely to ask to stay all proceedings at NCLT till decision made at any NCLAT pic.twitter.com/kQFipTmTVX

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— CNBC-TV18 (@CNBCTV18Live) October 6, 2021

The boardroom battle in Zee emerged last month, after Invesco, which along with OFI Global China Funds LLC holds 17.88 percent stake in the company, wrote to the Board of Directors on September 11 seeking an EGM.

The EGM was demanded by Invesco to push for the ouster of three directors including MD and CEO Punit Goenka. The shareholder also intended to nominate six new directors to the board.

On September 29, a week after Zee announced the mega merger with Sony Pictures Networks India (SPNI), Invesco moved the NCLT seeking a legal order for the EGM. The counsel representing the investor argued that the EGM call may be deliberately delayed till the merger comes into effect -- which will dilute Invesco's shareholding in the company.

The tribunal, on September 30, asked the board of Zee to consider the EGM demand raised by Invesco as mandated by the law.

On October 1, the board of Zee met and decided to not to hold the EGM. The company, citing the opinion of legal experts including "former Supreme Court judges", said the "requisition notice is no longer valid" as two of the directors whose ouster was sought by Invesco - Ashok Kurien and Manish Chokhani - have already resigned from their posts.