NCLAT to hear IDBI Bank and Axis Finance's plea against failed Sony-Zee merger

Delhi: The National Company Law Appellate Tribunal (NCLAT) on May 17 will hear IDBI Bank and Axis Finance's plea against the merger of Zee Entertainment Enterprises (ZEEL) with Sony Pictures Networks India.

A two-member bench of the appellate tribunal on Monday also declined the petitioners' request to defer its decision till the outcome of the plea filed by ZEEL in the Mumbai bench of NCLT against Sony to enforce the merger.

After Sony called off the merger in January this year, ZEEL approached the National Company Law Tribunal (NCLT) for its enforcement.

ZEEL’s plea is expected to be heard by NCLT from April 25.

The Mumbai Bench of NCLT had on August 10, 2023 approved the merger of ZEEL and Sony, which could have created a USD 10.5 billion media entity in the country.

Both IDBI Bank and Axis Finance have challenged the order of NCLT.

While approving the merger, NCLT in its order dismissed some applications moved by financial institutions opposing the move, including IDBI Trusteeship, IDBI Bank, Axis Finance, JC Flowers Asset Reconstruction Co and Imax Corp.

This was challenged by IDBI Bank and Axis Finance before NCLAT.

However, on December 15, 2023 the appellate tribunal had refused to stay the merger process.