NCLT had instructed the stock exchange bodies to reevaluate the non-compete clauses of the merger on May 11.
The National Company Law Appellate Tribunal (NCLAT) has set aside National Company Law Tribunal's (NCLT) order to National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) to review the initial approvals given to the Zee-Sony merger. NCLT issued the order to the stock exchanges to reexamine the no objection certificate (NOC) granted to the merger on May 11. The stock exchange bodies were also to reassess the non-compete clause of the merger.
Zee Entertainment Enterprises Limited (ZEEL) subsequently challenged NCLT order, saying the company was not given a fair opportunity to present its case. The order was passed by a two member bench of NCLAT on May 26. After the announcement, shares of ZEEL saw a significant rise in prices.
The Appellate Tribunal set aside the NCLT order, saying that it violated the principles of 'natural justice'. It also said that Zee's plead should have been heard while remitting the case back to NCLT.