Zee-Sony merger: NCLAT defers hearing of appeals by Axis Finance, IDBI Bank to December 15

Challenges to Zee- Sony merger by Axis Finance/IDBI Bank

The National Company Law Appellate Tribunal (NCLAT) on December 6 deferred the hearing of appeals filed by Axis Finance and IDBI Bank challenging the National Company Law Tribunal (NCLT) approval of the merger between Zee Entertainment Enterprises Limited (ZEEL) and Culver Max Entertainment (formerly Sony Pictures Networks India). The hearing is rescheduled for December 15.

The hearing was deferred owing to paucity of time. Additional Solicitor General (ASG) Venkatraman, representing IDBI Bank, requested for a shorter date, while senior advocates Abhishek Manu Singhvi and Mukul Rohatgi, appearing for ZEEL, sought a deferral to January.

The court, however, decided to hear the case on December 15.

On the last date of hearing on October 31, the NCLAT transferred the cases to a bench led by chairperson Justice (retd) Ashok Bhushan.

On October 12, ZEEL's lawyers Mukul Rohatgi and Arun Kathpalia urged the tribunal not to pass any orders in the case, saying Axis Finance didn't have the locus to file such a plea. They also objected to the adjournment as IDBI's case arose out of a different set of facts.

The NCLT had on August 10 approved the merger of Zee Entertainment and Sony Pictures Networks India, paving the way for the creation of a $10-billion media giant in the country.

An NCLT bench of HV Subba Rao and Madhu Sinha had initially reserved the judgment after creditors such as Axis Finance, JC Flower Asset Reconstruction Co, IDBI Bank, Imax Corp, and IDBI Trusteeship raised concerns about the scheme.