By S.N.Thyagarajan
The National Company Law Appellate Tribunal (NCLAT) on October 12 deferred the hearing of Axis Finance’s plea challenging National Company Law Tribunal (NCLT) order approving Zee-Sony merger to October 13.
Axis Finance’s lawyer asked the tribunal to defer the hearing of the plea as IDBI’s appeal against the same order is expected to come up for hearing on October 13.
During the course of the hearing, 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).
The merger is a significant development in the media and entertainment industry, and it appears that Axis Finance has raised objections related to the merger.
Earlier, IDBI Bank approached the appellate tribunal to challenge the merger. ZEEL on September 6 said the company has been served with an appeal on behalf of IDBI Bank before the NCLAT.