IDBI Bank has moved the appellate tribunal to challenge the National Company Law Tribunal’s approval for Sony-Zee merger, a move that could delay the big-ticket deal that has been approved by stock exchanges and the Competition Commission of India.
In a disclosure to the stock exchanges, Zee Entertainment Enterprise Ltd (ZEEL) said the company has been served with an appeal on behalf of IDBI Bank before the National Company Law Appellate Tribunal (NCLAT).
The lender has challenged NCLT order on August 10 granting approval to the composite scheme between ZEEL, Culver Max Entertainment (Sony), and Bangla Entertainment, a subsidiary of Sony, which would create a $10-billion media giant.
Last month, NCLAT had admitted IDBI Bank’s petition to initiate insolvency proceedings against ZEEL over unpaid dues of Rs 150 crore. The appellate tribunal has listed that matter for hearing on October 11.
“In the objection to a scheme, the objectors as well as the tribunal have a limited role and scope,” said Ashish Pyasi, associate partner at law firm Dhir & Dhir Associates, pointing out that NCLT had rejected IDBI Bank’s objection as it found that “the debt is disputed”.
