No insolvency for Zee: IDBI’s plea dismissed by Appellate Tribunal

The appellate tribunal has also granted IDBI Bank the liberty to file a fresh plea against Zee Entertainment for defaults beyond the Covid moratorium period.

By  Storyboard18Apr 7, 2025 10:11 PM
No insolvency for Zee: IDBI’s plea dismissed by Appellate Tribunal
In an official communication addressed to the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE), ZEEL confirmed that the appellate tribunal upheld the NCLT's order.

The National Company Law Appellate Tribunal (NCLAT)has dismissed IDBI Bank's plea seeking insolvency proceedings against Zee Entertainment. The NCLAT upheld the earlier order by the National Company Law Tribunal (NCLT), which rejected IDBI's plea against the media company.

In an official communication addressed to the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE), ZEEL confirmed that the appellate tribunal upheld the NCLT's order.

The development follows ZEEL's earlier disclosure on August 1, 2023, in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. In that filing, the company had informed stakeholders of the ongoing legal proceedings initiated by IDBI Bank.

“We are pleased to inform that the NCLAT has upheld the order passed by NCLT, thereby dismissing the appeal by IDBI Bank,” the statement from ZEEL read.

The appellate tribunal has also granted IDBI Bank the liberty to file a fresh plea against Zee Entertainment for defaults beyond the Covid moratorium period. IDBI Bank had sought insolvency proceedings against Zee Entertainment Enterprises Limited (ZEEL) to recover dues of ₹149.60 crore.

IDBI Bank, in its petition, claimed that Zee agreed to secure loans extended to Siti Networks through a Debt Service Reserve Account (DSRA) Guarantee. The lender says Siti Networks had to maintain the DSRA. It alleged that Zee submitted a guarantee and was responsible for any shortfalls in the DSRA. It adds that the media firm was informed about the shortfalls.

Zee opposed the lender’s plea and sought its dismissal. It also opposed the issuance of a notice. Earlier in May 2023, the Mumbai bench of the NCLT had dismissed the bank’s insolvency plea against Zee.

First Published on Apr 7, 2025 10:11 PM

More from Storyboard18

How it Works

DPIIT: M&E startups cross 2,400 mark, constitute 1.46% of total startup ecosystem

DPIIT: M&E startups cross 2,400 mark, constitute 1.46% of total startup ecosystem

How it Works

India’s I&B sector draws ₹5,408 cr FDI in 2024, Radio rebounds strongly

India’s I&B sector draws ₹5,408 cr FDI in 2024, Radio rebounds strongly

Television

'Open to all possibilities, including settlement': ZEEL CEO Punit Goenka on Star dispute

'Open to all possibilities, including settlement': ZEEL CEO Punit Goenka on Star dispute

How it Works

Media industry rallies for distinct rules for TV and OTT regulation

Media industry rallies for distinct rules for TV and OTT regulation

Brand Makers

WPP plans to rebrand GroupM to WPP Media amid broader overhaul: Report

WPP plans to rebrand GroupM to WPP Media amid broader overhaul: Report

How it Works

CTV ad spends triple to Rs 1,500 Cr in 2024, now 1.5% of digital ads with 40% annual growth

CTV ad spends triple to Rs 1,500 Cr in 2024, now 1.5% of digital ads with 40% annual growth

Television

Bharti Airtel and Tata Group call off merger talks over DTH businesses

Bharti Airtel and Tata Group call off merger talks over DTH businesses

How it Works

TRAI Chairman pushes for multiple audience measurement rating agencies

TRAI Chairman pushes for multiple audience measurement rating agencies