The National Company Law Appellate Tribunal (NCLAT) on August 31 issued a notice to Zee Entertainment Enterprises Ltd. over a petition filed by private sector lender IDBI, directing it to file a reply within two weeks. The IDBI has challenged a National Company Law Tribunal (NCLT) order rejecting a plea to initiate insolvency proceedings against Zee.
An NCLAT bench comprising chairman Justice Ashok Bhushan and member Barun Mitra also granted IDBI two weeks to file rejoinder and directed to list the matter on October 11 for the next hearing.
The Bombay bench of the NCLT on May 19, 2023, set aside the bank’s plea seeking insolvency against Zee, observing that it was barred under section 10A of the Insolvency & Bankruptcy Code (IBC).
Section 10A refers to a special provision inserted by the government in IBC to help companies after economic activities resumed in phases post-lockdown.