The National Company Law Tribunal (NCL) at Mumbai on Friday issued notice to Zee Entertainment Enterprises in two pleas filed by Culver Max (erstwhile Sony Pictures Networks India) and Bangla Entertainment opposing Zee's application seeking the implementation of the merger between Sony and Zee.
Sony Pictures filed another application seeking directions from the NCLT under Section 45 of the Arbitration and Conciliation Act to the parties to pursue arbitration.
A coram of judicial member Lakshmi Gurung and technical member Charanjeet Singh Gulati granted two weeks to Zee to file its reply to the applications filed by Sony.
Both applications will be heard by NCLT on April 23.
Senior Advocate Darius Khambata, appearing for the Sony companies, told the Tribunal,
“We are filing an application under Section 45 of the Arbitration & Conciliation Act, under which a judicial authority (NCLT in current case) has power to direct the parties to pursue matter through arbitration if parties have made such agreement. Another application is challenging the maintainability of Zee Entertainment’s plea seeking implementation of the merger scheme of Sony and Zee in India."
Representing Zee, Cyril Amarchand Mangldas Parnter Gathi Prakash Karrah sought time to file their reply to the applications.
The merger between Sony and Zee was announced on December 22, 2021. However, it was called off by Sony Pictures.
Mad Men Film Ventures, a shareholder of Zee, later approached the NCLT seeking the enforcement of the merger scheme, which the tribunal had approved in August 2023.
In the meantime, Sony approached the Singapore International Arbitration Centre (SIAC) on February 4 seeking directions to prevent Zee from seeking legal remedies from other legal forums including the NCLT.
After the SIAC rejected Sony's plea for urgent relief, Mad Men approached the NCLT seeking an urgent order to ensure that any order passed by any other forum concerning the Zee-Sony merger would be subject to the orders of the NCLT.
Zee thereafter approached NCLT Mumbai seeking the implementation of the $10 billion merger between the two companies.