Zee-Sony Merger: NCLAT Postpones Order On IDBI, Axis Bank Pleas

The National Company Law Appellate Tribunal (NCLAT) has delayed reaching a conclusion on the appeals filed by Axis Bank and IDBI Bank, challenging the cancelled Zee-Sony merger, according to an industry report. The appeal tribunal will make a decision on April 15 regarding the potential of hearing challenges to the merger's legal sanction after its cancellation.

IDBI Bank and Axis Bank have requested a postponement of the current action from the NCLAT to provide the NCLT time to review Zee's plea to force the merger. Zee, on the other hand, has asked NCLAT to continue hearing the matter, arguing that the current case would remain unaffected by the outcome of the plea in NCLT.

The merger of Zee Entertainment and Sony Pictures Networks India (SPNI) was permitted by the Mumbai bench of the NCLT on 10 August, opening the door for the establishment of a $10 billion media conglomerate in the nation. A non-compete clause in the merger agreement was contested by dissenting creditors, which included Axis Finance, JC Flower Asset Reconstruction Co., IDBI Bank, and others. NCLAT postponed the case until January in December after declining to impose an interim halt on the merger.

According to Zee, the decision to call off the merger was planned and required spending 700 crore, or $80 million, to comply with the necessary regulations. The NCLT is still handling the matter.