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Axis Finance has lodged an appeal with the National Company Law Appellate Tribunal (NCLAT) contesting the approval granted by the National Company Law Tribunal (NCLT) to the Zee-Sony merger. This development follows a little over a month after the NCLT's Mumbai branch sanctioned the merger on August 10, dismissing all related applications.
In an official statement, the company disclosed, "Axis Finance Limited has been served with an appeal challenging the order dated August 10, 2023, passed by the NCLT Mumbai Bench. This appeal was filed on behalf of Axis Finance Limited with the NCLAT, Delhi. The NCLT's order had dismissed Interlocutory Application No. 124 of 2022 in CP (CAA) No. 209 of 2022 in CA (CAA) No. 204 of 2022, thereby approving the composite scheme of arrangement involving Zee Entertainment Enterprises Limited, Bangla Entertainment Private Limited, and Culver Max Entertainment Private Limited (formerly Sony Pictures Networks India Private Limited)."
The $10 billion merger was initially unveiled in 2021 but encountered complications when the Securities and Exchange Board of India (SEBI) imposed a one-year ban on Zee's Chief Executive Officer (CEO), Punit Goenka, who was slated to oversee the merged entity. This prohibition barred him from serving on the boards of listed companies for the specified duration.
Following Punit Goenka's unsuccessful appeal to lift the ban, Zee established an interim committee overseen by its board to manage operations.
In June, Goenka informed The Economic Times that the merger would proceed, regardless of whether he served as the CEO of the new entity.
In February, an Indian tribunal temporarily halted insolvency proceedings initiated by IndusInd Bank Ltd against Zee, providing significant relief to the media company. Subsequently, Zee resolved its dispute with the lender.
