New Delhi: In a major relief to media major Zee Entertainment Enterprises Ltd (ZEEL), the National Company Law Appellate Tribunal (NCLAT) on Friday stayed the insolvency proceedings initiated against it earlier this week.
Admitting a petition filed by ZEEL Managing Director and chief executive Punit Goenka, the appellate tribunal issued notices to private sector lender IndusInd bank and the interim resolution professional directing them to file a reply in two weeks.
NCLAT said the submissions made by both sides need a detailed hearing.
“List the appeal for final disposal on March 29. In the meantime, the order passed by the adjudicating authority on February 22, 2023 remains stayed,” said the NCLAT bench comprising Chairperson Justice Ashok Bhushan and Barun Mitra. Commenting on the development, Goenka in a statement said:” We respect the decision taken by NCLAT and remain committed towards protecting the interests of all stakeholders. Our focus continues to be on the timely completion of the proposed merger (Culver Max Entertainment).”
On Wednesday, the Mumbai bench of the National Company Law Tribunal (NCLT) had admitted a plea filed by IndusInd Bank to initiate insolvency proceedings and had appointed Sanjeev Kumar Jalan as the interim resolution professional in the matter.
The NCLAT order is a major reprieve for ZEEL, which is merging with rival Culver Max Entertainment, formerly known as Sony Pictures Networks India, creating India’s biggest media empire.