The National Company Law Appellate Tribunal (NCLAT) yesterday (October 7) set aside the order of the National Company Law Tribunal (NCLT), asking Zee Entertainment Enterprises Ltd. (ZEEL) to file reply to Invesco’s plea before it (NCLT) within two days. In its order dated October 7, NCLAT said that reasonable and sufficient opportunity should be given to ZEEL for filing a reply.
“It is clear that the learned NCLT has committed an error in not granting reasonable and sufficient time for filing a reply, which is a complete violation of Rule 37 of NCLT Rules and principles of natural justice,” said the appellate tribunal in its order.
Zee had approached the appellate tribunal on October 6 in a bid to stay the NCLT order, which sought its reply by October 7 on a plea moved by shareholders Invesco Oppenheimer Developing Markets Fund and OFI Global China Fund LLC. The media company said, it had approached NCLAT because it needed reasonable time and opportunity to respond.
ZEEL has also filed a suit in the Bombay high court, claiming that the requisition notice sent by Invesco and OFI Global is invalid. The two shareholders, which together hold 17.88% stake in the company, wrote to the Board of Directors on September 11, seeking an extraordinary general meeting to push for the ouster of three directors including MD and CEO Punit Goenka. The two foreign shareholders also intended to nominate six new directors on the Board.