Sony Group units Culver Max Entertainment and Bangla Entertainment have filed two applications challenging the maintainability of Zee Entertainment’s plea seeking implementation of the merger scheme.
The division bench of judicial member Lakshmi Gurung and a technical member Charanjeet Singh Gulati, while granting two weeks to Zee to file its reply has adjourned the matter for further hearing on April 23.
On January 22, Sony Group terminated its proposed merger deal with Zee over the latter’s non-fulfillment of merger closing conditions. Sony had also approached the Singapore International Arbitration Centre seeking $90 million in termination fees.
The two companies had signed binding agreements to merge their businesses in December 2021.
Senior Advocate Darius Khambata appearing for Sony entities informed the tribunal that they were filing two applications.“We are filing an application under Section 45 of the Arbitration & Conciliation Act, under which a judicial authority (NCLT in the current case) has the power to direct the parties to pursue the matter through arbitration if parties have made such an agreement,” argued Khambata.“Another application is challenging the maintainability of Zee Entertainment’s plea seeking implementation of the merger scheme of Sony and Zee in India.”
Gathi Prakash Karrah, partner of law firm Cyril Amarchand Mangldas, appearing for the Zee Entertainment argued that they will need time to file their replies.
The Zee counsel also argued that if the maintainability applications are taken up on March 12, then Zee would not have sufficient time to file replies, especially if Sony insists on filing rejoinders before 12 March.
Earlier, the Mumbai bench of the NCLT had clubbed Zee’s plea with that of its shareholder Mad Man Film Ventures and has posted the matter for hearing on March 12.
Both Zee and Mad Man Film Ventures have approached the NCLT seeking implementation of the merger scheme between Sony and Zee. Sony had earlier called Mad Man Film Ventures as a proxy for Zee.
The tribunal had also issued notices to Culver Max and Bangla Entertainment asking them to file a reply on Zee’s application.
