NCLAT closes insolvency case against Zee Entertainment as it settles with IndusInd Bank

The National Company Law Appellate Tribunal (NCLAT) on Monday disposed of the appeal filed by Zee Entertainment Enterprise promoters after the media major reached a settlement with IndusInd Bank following payment of all dues to the financial creditor.

A joint application was moved by Punit Goenka, Managing Director and CEO of ZEE Entertainment Enterprise Ltd (ZEEL), and IndusInd Bank bringing on record the settlement agreement dated March 29, 2023 reached between the financial creditor and the leading media & entertainment firm.

Counsel appearing for the parties submitted that as per the settlement agreement, all payments have been made before June 30, 2023. They also requested to close the Corporate Insolvency Resolution Process against ZEEL.

On this, a two-member NCLAT bench comprising Chairperson Justice Ashok Bhushan and Member Barun Mitra said: “In view of the settlement agreement between the parties nothing survives to be decided in the appeal.” “Impugned order dated 22.02.2023 is set aside. CIRP against the Corporate Debtor is closed,” it said further.

NCLAT has also directed both the parties to pay the cost that the interim resolution professional incurred during the period of the resolution process.

Earlier on February 22, the Mumbai bench of the National Company Law Tribunal (NCLT) had directed to initiate CIRP against ZEEL and had appointed an interim resolution professional suspending the board.

However, this was immediately stayed by NCLAT on February 24 over the plea moved by Goenka.

IndusInd Bank had moved NCLT against ZEEL claiming that the media and entertainment firm defaulted Rs 83.08 crore.

The matter pertained to a default in payments by Essel Group’s multisystem operator arm Siti Networks. ZEEL was a guarantor to the loans taken by Siti Networks.

ZEEL is merging with rival Culver Max Entertainment Pvt Ltd, formerly known as Sony Pictures Networks India, which will create India’s biggest media empire. PTI