The National Company Law Appellate Tribunal (NCLAT) on October 13 refused to issue a notice in the appeals filed by Axis Finance and IDBI Bank challenging the National Company Law Tribunal (NCLT) order approving the Zee-Sony merger.
The NCLAT has adjourned the case to October 31 and said ZEEL can file a response if needed.
On October 12, ZEEL's lawyers Mukul Rohatgi and Arun Kathpalia urged the tribunal not to pass any orders in the case as Axis Finance does not have the locus to file such a plea. Furthermore, they objected to the adjournment as IDBI's case arise out of different set of facts.
However, the appellate tribunal deferred the hearing of the case without issuing notice.
The National Company Law Tribunal (NCLT) had on August 10 approved the merger of Zee Entertainment and Sony Pictures Networks India (SPNI), paving the way for the creation of a $10-billion media giant in the country.
The tribunal also dismissed all objections regarding the merger.
NCLT initially reserved its verdict on the merger between Zee Entertainment Enterprises and Culver Max Entertainment (previously known as SPNI).
The bench comprising HV Subba Rao and Madhu Sinha 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.
In December 2021, Zee Entertainment and Sony Pictures reached an agreement to combine their businesses. Subsequently, both companies approached the tribunal to seek approval for the merger, having already obtained necessary permissions from the National Stock Exchange (NSE), Bombay Stock Exchange (BSE), and other regulatory bodies like the Competition Commission of India (CCI) and the Securities and Exchange Board of India (SEBI).
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