Zee Shareholder, Mad Man Film moves NCLT to restrain Zee and Sony from defying court-sanctioned merger

Mad Man Film Ventures, a Zee shareholder, has approached the National Company Law Tribunal (NCLT) seeking orders to restrain Zee Entertainment Enterprises and Sony Pictures India Networks (now Culver Max) from acting against a 2023 NCLT order sanctioning the Zee-Sony merger.

The tribunal, comprising judicial member Lakshmi Gurung and technical member Charanjeet Singh Gulati, declined to grant immediate relief, stating that the issue requires adjudication and granted two weeks for Zee and Sony to respond. The matter is scheduled for hearing on March 12.

The merger between Sony and Zee announced on December 22, 2021, was recently called off by Sony Pictures (now Culver Max). Mad Man later sought enforcement of the merger scheme approved by the NCLT in August 2023.

Meanwhile, Sony approached the Singapore International Arbitration Centre (SIAC) on February 4 to prevent Zee from seeking legal remedies from other forums, which was rejected. Mad Man then approached the NCLT, requesting an urgent order to ensure that any other forum's orders regarding the merger would be subject to the NCLT's orders.

Senior Advocate Mustafa Doctor presented arguments on behalf of Mad Man, stressing that parties cannot anticipate NCLT proceedings. Meanwhile, Senior Advocate Darius Khambata represented Sony and challenged Mad Man's right to file the application.