Disclosure under Regulation 30 of the SEBI (LODR) Regulations, 2015
ZEEL · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
IDBI Bank had filed a Section 7 insolvency application against ZEEL in December 2022, claiming approximately ₹149.60 crore as a corporate guarantor for Siti Networks' working capital facilities. The NCLT Mumbai dismissed this application on May 19, 2023, ruling that it was barred by Section 10A of the Insolvency and Bankruptcy Code (the COVID-era moratorium period). IDBI Bank then appealed to NCLAT Delhi. On April 7, 2025, NCLAT dismissed IDBI Bank's appeal and upheld the NCLT order. The tribunal held that ZEEL's guarantee was limited to maintaining the Debt Service Reserve Account (DSRA), and since IDBI Bank's first formal demand notice to ZEEL was dated March 5, 2021 — which fell within the Section 10A barred period — the insolvency application was rightly rejected.
Positive for ZEEL shareholders as it definitively closes the threat of insolvency proceedings against the company on this matter. No financial outflow or settlement is required from ZEEL. However, the NCLAT order notes that dismissal of the Section 7 application does not prevent IDBI Bank from pursuing other legal remedies to recover the dues.