The National Company Law Appellate Tribunal has overturned the National Company Law Tribunal order that instructed the stock exchange to review its approvals in the Zee-Sony merger case

Keywords: NCLT, NCLAT, Zee, Sony, merger

On Friday, the NCLAT overturned a decision made by the NCLT in Mumbai. The NCLT had previously instructed the stock exchanges to reevaluate their initial approvals for the merger between Zee Entertainment Enterprises Ltd (Zee) and Culver Max Entertainment.

The NCLT issued an order on May 11 to the National Securities Exchange of New York and Bombay Stock Exchange, before June 16, 2023, to issue new no objection certificates[1]. ZEE filed an appeal with the NCLAT challenging the May 11 order. ZEE argued that it was not given sufficient opportunity to present its case. Furthermore, it stated that matters such as non-compete fees are outside the jurisdiction of the NCLT.

Today, a bench comprising Dr. Alok Srivastava and Justice Rakesh Kumar nullified the NCLT order.

In September 2021, Culver Max entered into a nonbinding term sheet with ZEE. Their digital assets, production operations, linear networks and programme libraries were to be brought together[2]. The combined company will possess more than 70 television channels, two video streaming platforms and two film studios. This merger will establish the merged entity as the largest entertainment network in India.

Written by- Aditya a student of ILSR, GLA University, Mathura, 2^nd Semester, an intern under Legal Vidhiya

[1] BAR AND BENCH, https://www.barandbench.com/news/litigation/zee-sony-merger-nclat-sets-aside-nclt-order-directing-stock-exchange-reassess-approvals (last visited on 26^th May, 2023).

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