Disclosure under Regulation 30 of the SEBI (LODR) Regulations, 2015
Awaiting price reaction for this filing.
Zee Entertainment Enterprises Limited (ZEEL) informed stock exchanges that the National Company Law Appellate Tribunal (NCLAT) has dismissed an appeal filed by IDBI Bank Limited challenging the NCLT Mumbai's May 19, 2023 order. NCLAT upheld the NCLT ruling which had rejected IDBI Bank's Section 7 insolvency application against ZEEL as barred by Section 10A of the Insolvency and Bankruptcy Code (the COVID-era moratorium period). The case arose from a corporate guarantee given by ZEEL for working capital facilities of up to ₹150 crore extended by IDBI Bank to Siti Networks Limited, with IDBI claiming a default of approximately ₹149.60 crore. Both NCLT and NCLAT held that the first demand notice to ZEEL as guarantor was issued on March 5, 2021, which fell within the Section 10A barred period, making the insolvency application time-barred.
This is a significant positive development for ZEEL shareholders as it definitively closes the insolvency threat from IDBI Bank, removing a major overhang on the stock. The ruling confirms ZEEL's position that the insolvency plea was legally unsustainable, though it does not prevent IDBI Bank from pursuing other legal remedies to recover the disputed dues from ZEEL as guarantor.