Zee-Sony Merger: After IDBI Bank, Axis Finance files appeal in NCLAT

Axis Finance, on Thursday, filed a petition with the National Company Law Appellate Tribunal (NCLAT) challenging the approval of the Zee Entertainment Enterprise Ltd (ZEEL) and Sony merger order by the National Company Law Tribunal (NCLT). In response to Axis Finance's plea, the NCLAT has issued a notice to the company.

In a stock exchange filing, ZEEL said it "has been served with an appeal on behalf of Axis Finance Limited against the Company before the NCLAT, Delhi, challenging the order dated August 10, 2023 passed by NCLT, Mumbai Bench".

In August 2023, the Bombay High Court rejected Axis Finance's request to involve Zee, Essel Mauritius, and Sony in its commercial summary lawsuit against Subhash Chandra Goenka and other individuals associated with ZEEL. Axis Finance had been pursuing the recovery of Rs 146 crore from Subhash Chandra Goenka.

On August 10, the Mumbai bench of the National Company Law Tribunal granted its approval for the comprehensive scheme involving Zee, Sony, and Bangla Entertainment, a subsidiary of Sony. The objections raised by numerous lenders of ZEEL, such as IDBI Trusteeship, IDBI Bank, Axis Finance, JC Flowers Asset Reconstruction Co, and Imax Corp, were dismissed by the NCLT.

Previously, IDBI Bank contested the NCLT's approval of the Sony-Zee merger at the appellate tribunal. In a statement made to the stock exchanges on September 6, ZEEL revealed that the company has been officially notified of IDBI Bank's appeal filed before the NCLAT.

ZEEL said that the Sebi order is critical to the Zee-Sony merger. SAT will continue to hear the matter on September 27.