NCLAT to hear IDBI's plea for insolvency proceedings against ZEE Entertainment today
IDBI bank's plea against Zee Entertainment related to insolvency proceedings on Thursday. "Learned Counsel for Appellant prays for and is allowed a week’s time to file the Additional Affidavit," said the NCLAT bench, comprising Chairperson Justice Ashok Bhushan and Member Barun Mitra, reported PTI. In its plea, the IDBI bank had challenged the orders of the Mumbai bench of the NCLT, which rejected the private lender's plea to begin the insolvency proceedings against Zee Entertainment Enterprises Ltd.
Last week, the Mumbai bench of NCLT had given a green signal to the merger of ZEE with Culver Max Entertainment (earlier known as Sony Pictures Networks India). Before NCLAT, IDBI had challenged the NCLT order passed in May this year. Under its plea, the private lender had sought insolvency against media major Zee entertainment, observing that it was barred under Section 10A of the insolvency and Bankruptcy Code (IBC).
In its order, the NCLT bench had said that ZEEL, the corporate guarantor for the loan availed by Siti Networks -- the principal Borrower of IDBI Bank -- has committed a default. The default was committed during the timeline specified under section 10A of the IBC. Section 10A makes it mandatory that no application for initiation of corporate insolvency resolution process (CIRP) can be filed against any debtor by any financial and operational creditor for any default arising on or after March 25, 2020, for a period of one year, reported PTI.
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