Delhi High Court rejects Bloomberg plea against order to take down story against Zee

The Delhi High Court on Thursday upheld an order directing news platform Bloomberg to take down a report alleging that market regulator Securities and Exchange Board of India (SEBI) had found a US $241 million accounting irregularity at Zee Entertainment [Bloomberg Television Production Services India Private Limited & Ors v Zee Entertainment Enterprise Limited]..Justice Shalinder Kaur also said that Bloomberg will have three days time to comply with the order to takedown the article. "It is clarified that the appellants shall comply with the trial court order within three days," the High Court order stated. Zee lawyer Vijay Aggarwal then assured the Court that his client will not file contempt plea against Bloomberg till Tuesday. .The Court further refused to accede to a request by the counsel representing Bloomberg to keep the order in abeyance for a week. "Parties who need to sign for me to avail the remedy (of further appeal) are not in Delhi. They are abroad," the counsel submitted after the order was pronounced. However, the Court replied, "We have given you sufficient time.".Bloomberg moved the Delhi High Court against a trial court order directing it to remove an article alleging that the SEBI found accounting irregularities of around US $240 million at Zee Entertainment.The order was passed ex parte by Additional District Judge (ADJ) Harjyot Singh Bhalla of the Saket Courts..The article titled India Regulator Uncovers $241 Million Accounting Issue at Zee was published by Bloomberg on February 21, 2024.The story said that SEBI had “found a hole of more than $240 million in the accounts of Zee Entertainment Enterprises Ltd."As per the story, the market regulator had found that more than $241 million was missing from the Zee Entertainment's accounts with no proper transaction history shown for the amount..Zee then filed a defamation suit before a Delhi district court against Bloomberg and its journalists Anto Antony, Saikat Das and Preeti Singh.It told the district court that the article was defamatory and that SEBI has not rendered any finding against Zee. It was argued that the article claims that SEBI had unearthed large financial bungling though no such finding was disclosed..Advocate Senior Advocate Rajiv Nayar appeared for Bloomberg and told the High Court that the order passed by the trial court was without any reason or prima facie finding."This is the most amazing order. No prima facie case made, balance of convenience, irreparable loss or hardship," he said.Nayar said that Bloomberg is a reputed channel and a media company and the trial court judge did not even hear the news platform before publishing the order.Meanwhile, advocate Vijay Aggarwal appeared for Zee and contended that that there was nothing on record to show that the allegations made by Bloomberg were true."They don't have a case on facts. If there is any in public record, dismiss my suit right now... Just because they are a company of international repute does not mean they can defame an Indian company," he argued..Apart from Senior Advocate Rajiv Nayar, Bloomberg was also represented by Kochhar & Co through Rohit Kochhar, founding member and managing partner of Kochhar & Co. The firm's partners Shiv Sapra and Samiron Borkataky also appeared in the case. They were assisted by Rajat Gava, Ikshvaaku Marwah and Sanskriti Shrimali.Advocates Vijay Aggarwal, Naman Joshi, Tarun Singla, Sidhu, Aayushi Bansal and Raddharaman Rajoria appeared for Zee..[Read Judgement]