NCLT to hear ZEE’s plea on enforcing merger; Sony raises questions

The Zee-Sony merger saga took a new turn as the National Company Law Tribunal (NCLT) agreed to hear Zee Entertainment Enterprises Limited (ZEEL)'s plea seeking enforcement of the deal. This comes after Sony Pictures Network India (now Culver Max Entertainment) terminated the merger agreement in January 2024.

Represented by senior advocate Janak Dwarkadas, ZEEL argued that the NCLT, having initially approved the merger, holds the jurisdiction to enforce its implementation. This move suggests ZEE’s determination to push through the merger despite Sony’s withdrawal.

On the other hand, Sony, represented by senior counsel Darius Khambata, countered by stating their intention to file an application questioning the maintainability of ZEE’s plea. Additionally, they mentioned a similar challenge already filed against a related application by ZEE shareholder Madmen.

Sony’s focus on “maintainability” indicates their argument revolves around whether ZEE’s plea adheres to legal requirements and procedures. This sets the stage for a legal battle on the validity of ZEE’s attempt to enforce the merger.

The NCLT’s decision on the maintainability of ZEE’s plea will determine the next steps in this complex merger saga. Whether the merger proceeds or not hinges on the legal arguments presented by both sides.