Zee Entertainment, IndusInd settle payments issue, NCLAT disposes of appeal

Zee Entertainment and IndusInd Bank on Monday announced that all the due payments have been settled between the two entities, as per media reports. The National Company Law Appellate Tribunal (NCLAT) has disposed of the appeal.

The two companies had informed NCLAT that they have reached a settlement in relation to their payment dispute, paving way for the Sony deal, in March 2023.

IndusInd Bank had approached the bankruptcy court in February, seeking to start insolvency proceedings against Zee, a move which could have threatened the merger by stopping all transactions, including asset transfers.

IndusInd Bank, in its plea, claimed a default of Rs 83.08 crore against the media and entertainment firm promoted by Subhash Chandra.

In December 2021, Sony and Zee signed a merger deal to combine their linear networks, digital assets, production operations, and program libraries.

The National Company Law Appellate Tribunal, an appeals court, had halted the insolvency proceedings against the media company last month.

A lawyer representing Zee told NCLAT that the Sony deal had received all necessary approvals but would be stalled because of the initiation of corporate insolvency proceedings.

The merger, which has been in the making longer than the timelines originally indicated by Zee, had been approved by Zee’s shareholders and India’s antitrust regulator.