Zee-Sony merger: Mad Man Film Ventures files application against Sony

The ongoing saga of the proposed Zee-Sony merger took another turn this week as both parties faced off in the National Company Law Tribunal (NCLT). Mad Man Film Ventures, a Zee shareholder, filed an application seeking to restrain Sony from taking any further actions related to the merger while the NCLT case is pending. However, Sony strongly objected, arguing that Mad Man lacks legal standing and their attempt to "rewrite" the agreed-upon merger scheme is invalid.

Mad Man's Argument:
Their primary concern is that Sony's pursuit of arbitration before the Singapore International Arbitration Centre (SIAC) is an attempt to pre-empt the NCLT proceedings. They also argue that Sony cannot seek to terminate the merger agreement and claim a termination fee while the NCLT case is ongoing.
Sony's counter:
Sony vehemently contested Mad Man's assertions, emphasizing that they have no locus standi in the matter. They point out that Mad Man participated in the voting process for the merger scheme and are now essentially trying to renege on their agreement.
NCLT's decision:
While the NCLT did not immediately grant relief to Mad Man, they have requested responses from the respondents (Zee and Sony Pictures Network India) and scheduled a further hearing for March 12th.
This latest development highlights the growing complexities surrounding the Zee-Sony merger. The outcome of the NCLT case and the parallel arbitration proceedings will significantly impact the future of the merger.