afaqs! news bureau

NCLT serves notice to Sony on Zee's plea for merger execution

The tribunal will take up the case on March 12.

The National Company Law Tribunal (NCLT), on February 6, issued a notice to Sony Pictures Network India, requesting a response within the next two weeks regarding the terminated merger with Zee Entertainment Enterprises. The tribunal will take up the case on March 12.

Zee Enterprises has appealed the NCLT to compel Culver Max Entertainment (formerly SPNI) to proceed with the proposed merger, which would have formed a $10 billion media powerhouse, but was abandoned by the Japanese media conglomerate in January. Furthermore, it wants the dispute to be resolved within India.

Zee urged NCLT that since the tribunal had approved the merger, it has jurisdiction to entertain petitions to implement the merger. Meanwhile, Culver Max Entertainment said that it will be filing an application questioning the maintainability of this plea. 

The NCLT has consolidated Zee's request with that of its shareholder, Mad Man Film Ventures, identified as an intermediary of the Indian broadcaster. Previously, Mad Man Film Ventures petitioned the NCLT to enforce the merger arrangement between Sony and Zee.

Sony terminated the merger saying that Zee did not meet certain conditions like financial management and recovery of dues from the related party. 

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