Last month, Sony terminated the $10 billion merger between its Indian arm and Zee Enterprises, citing that Zee failed to meet the conditions precedent. These conditions included requirements related to financial management and the recovery of dues from the related party.
NCLT on Tuesday issued notice to Sony, seeking reply on Zee Entertainment Enterprises on the recently terminated merger.
Sony had last month terminated the $10 billion merger of its Indian arm with Zee Enterprises, saying that Zee did not meet the conditions precedent—among them financial management and recovery of dues from the related party.
Zee told NCLT that since it was the tribunal that had approved the merger, it has jurisdiction to entertain petitions to implement the merger. In its defence, Culver Max Entertainment argued that the company would be filing an application questioning the maintainability of Zeel's plea.
By maintainability Sony was referring to whether or not the plea filed by Zee is legally tenable or not.
The NCLT has now directed Sony to file its response to the plea in two weeks and listed the case for hearing on March 12.
NCLT had acknowledged a similar plea from Mad Men Film Ventures, a shareholder of Zee, regarding the halted merger. Mad Men Film Ventures brought the matter before the NCLT, urging both Zee and Sony to proceed with the approved merger.
The Zee-Sony merger, in the works for two years, would have created an Indian TV juggernaut with more than 90 channels across sports, entertainment and news that would have competed with the likes of Walt Disney, and billionaire Mukesh Ambani's Reliance.
