Singapore’s arbitration tribunal has rejected Sony’s plea against Zee that sought a stay on court proceedings in India after the Japanese media company called off a $10-billion merger. In a regulatory filing on February 4, Zee said, “The Singapore International Arbitration Centre said, it has no jurisdiction or authority to block Zee from approaching the NCLT as the merger falls within the purview of the local tribunal.” Zee has asked the National Company Law Tribunal (NCLT) to direct Sony’s India arm to honour the merger obligations. Sony’s application in Singapore was filed under the emergency arbitration procedure, in which an emergency arbitrator is appointed to hear applications for urgent relief prior to the constitution of the tribunal. Although the emergency arbitrator has rejected Sony’s application for an interim relief, the Japanese major could continue pursuing arbitration under normal procedure.
The NCLT currently has two petitions before it: one by Zee and the other by a Zee shareholder, Mad Men Film Ventures. Both the pleas are seeking enforcement of the merger between the Indian broadcaster and Sony after the latter called it off on January 22, 2024. The NCLT has admitted Mad Men’s petition while it is yet to take up Zee’s petition.
It may be recalled that Sony called off the merger with Zee, citing unfulfilled deal conditions. It then immediately invoked arbitration. It also sought $90 million as termination fee from Zee owing to purported breaches of the deal pact. Zee contested Sony’s claim in Singapore and simultaneously moved the NCLT which had approved the Sony-Zee merger in August 2023.