IndusInd Bank and Zee Entertainment settle payments, NCLAT disposes off appeal

The National Company Law Appellate Tribunal (NCLAT) has set aside NCLT's decision admitting IndusInd's insolvency plea against Zee Entertainment and it has directed both parties to pay the cost of the brief period incurred by the interim resolution professional. 

Zee Entertainment and IndusInd Bank confirmed on June 30 that ZEEL had successfully fulfilled all outstanding payments to the bank, according to media reports. 

In March 2023, Zee Entertainment and IndusInd Bank notified the tribunal of a settlement agreement wherein they confirmed the existence of payment obligations that must be fulfilled by either June 30 or within one week of the Sony merger, the reports stated. 

Previously, the NCLT had previously directed the NSE and BSE to reconsider their approval for the Zee-Sony merger, with the order later being set aside by the NCLAT. 

In May, a bench consisting of two members at NCLAT observed that the order was against the "principle of natural justice". 

Zee Entertainment was not given a chance to provide a response regarding the issue of Shirpur Gold Refinery, a Subhash Chandra-led Essel Group firm. 

The NCLT’s order on May 11 had come after the BSE and NSE counsels brought up new points regarding the merger scheme and emphasised the Sebi order on Shirpur Gold Refinery. The Zee promoters' names had appeared there in connection with the diversion of funds.

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