ZEE Moves To NCLAT Against NCLT's Order: ZEE-Invesco Battle

The ZEE-Invesco fiasco is filled with many twists and turns as none of the two is ready to step back. Now in the latest development on the matter, Zee Entertainment Enterprises (ZEE) has moved to the National Company Law Appellate Tribunal (NCLAT) to challenge the decision of the National Company Law Tribunal (NCLT) which was in favour of Invesco and OFI.

On the issue, a  ZEE spokesperson said, “The Company has moved to the NCLAT in accordance with the due process available under the law. The Company continues to have full faith in the Indian judicial system and will take all the necessary steps that are in the best interests of all its shareholders.”

Meanwhile, ZEE has also filed a petition in the Bombay High Court against the demand to call an Extraordinary General Meeting (EGM) for the removal of Punit Goenka, MD & CEO of ZEE, by two of its top investors- Invesco Developing Markets Fund and OFI Global China Fund. "The Company has also filed a suit in Bombay High Court to declare that the requisition notice sent by Invesco Developing Markets Fund and OFI Global China Fund LLC is invalid," added the ZEE spokesperson.

In its petition, the company had requested the top court to declare Invesco's demand as "illegal and void." ZEE filed the suit before the HC under ordinary original civil jurisdiction in a stock exchange filing. On Friday, it had announced that the request to convene an EGM for the ouster of Director Punit Goenka has been rejected. But as the case is still under process at the NCLT, it is being speculated that the Bombay High Court may reject ZEE's petition. 

In a previous statement issued on Friday, October 1, ZEEL had called Invesco's demand "invalid and illegal". "In its meeting held on 1st October 2021, the Board has arrived at a conclusion that the requisition is invalid and illegal; and has accordingly conveyed its inability to convene the Extraordinary  General Meeting to Invesco Developing Markets Funds and OFI Global China Fund," said the press statement issued by ZEEL after the meeting with its board members.

In a previous hearing on the issue, NCLT had ordered the Board of Zee Entertainment Enterprises to summon the EGM in response to shareholders Invesco and OFI's requests. Invesco, along with its subsidiary OFI Global China Fund, holds a 17.88 per cent stake in ZEE.