IDBI Bank moves NCLT against ZEEL again, company calls it abuse of law and harrassment
The company pointed out that the bank has repeatedly failed in earlier attempts before NCLT, NCLAT, and DRT, and vowed to contest the claim while considering defamation and damages action.
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Zee Entertainment Enterprises Limited (ZEEL) has strongly opposed an insolvency application filed by IDBI Bank Limited before the National Company Law Tribunal (NCLT), Mumbai. The bank, claiming to be a financial creditor, has sought initiation of the Corporate Insolvency Resolution Process against the company under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, alleging a default of ₹225.22 crore.
In a regulatory filing dated September 10, 2025, ZEEL confirmed receipt of the petition and stated that the application was filed with mala fide intent to harass and damage the company’s reputation. ZEEL described the plea as “malicious, fraudulent and meritless,” asserting that it constitutes an abuse of the legal process.
The dispute began when a Debt Service Reserve Agreement was executed between ZEEL and IDBI Bank in relation to credit facilities extended by the bank to Siti Networks Limited. This is not the first time the matter has reached the NCLT. IDBI Bank had earlier filed a similar insolvency application in 2022 based on the same alleged debt. That plea was dismissed by the NCLT on May 19, 2023. An appeal filed by the bank before the National Company Law Appellate Tribunal (NCLAT), Delhi, was also dismissed on April 7, 2025, upholding the earlier NCLT ruling.
In addition, the bank attempted recovery through the Debts Recovery Tribunal (DRT). An initial application in Mumbai was withdrawn, followed by a filing in Delhi. However, the DRT, Delhi dismissed the case on January 13, 2025. The bank has since appealed before the Debts Recovery Appellate Tribunal, Delhi, where the matter remains pending.
Despite these repeated setbacks, IDBI Bank has now approached the NCLT once again, asserting that ZEEL is liable for the outstanding sum, along with accrued interest, penal charges, and compound interest effective from July 1, 2025, until realization. ZEEL, however, stated that it does not expect any financial implications given the bank’s consistent failure to secure favorable rulings in previous forums.
The company has indicated that it is prepared to contest the claim vigorously and may also pursue legal remedies against the bank for malicious prosecution, defamation, and damages.
