NCLAT Refuses Stay On Zee-Sony Merger

As per the latest developments, The National Company Law Appellate Tribunal (NCLAT) has refused to grant a stay on the merger of the media giants Zee Entertainment (ZEEL) and Sony.

However, the law body has issued a notice to hear the plea again on January 8.

The challenging parties were Axis and IDBI Bank.

Earlier, IDBI approved the loan to Essel Group on the guarantee of ZEEL. The bank argued that they may not recover the pending loans if the merger progresses further. They, thus, requested that the NCLAT put a stay on further proceedings.

However, ZEEL informed the court that both, IDBI and Axis Finance, lack the legal standing to submit the plea. It further stated that these companies lack the necessary lending capacity or share capital, according to the law, to oppose the ZEE-Sony merger.

NCLAT acknowledged that the merger is upon the court's orders, and they cannot suspend it without considering the case on its merits. Consequently, the appellate tribunal instructed the submission of responses and postponed the case to January 8.

NCLAT, on August 10, approved the merger of Zee Entertainment and Sony Pictures Networks India, paving way for the creation of a USD 10-billion media giant in the country.