IDBI stated it’s unable to get better unpaid dues of round ₹150 crore. The tribunal instructed each events to submit replies and rejoinders, acknowledging that the case requires consideration.

The NCLAT will subsequent hear the matter on 11 October.

In this case, IDBI Bank contested the choice of the National Company Law Tribunal (NCLT) Mumbai bench, dated 19 May, which had denied IDBI’s request to begin insolvency proceedings towards ZEEL. This was primarily based on the statutory restriction outlined in part 10A of the Insolvency and Bankruptcy Code (IBC).

Section 10A of the IBC prevents the initiation of insolvency proceedings for defaults that occurred throughout the COVID-19 interval, outlined as 25 March 2020 to 25 March 2021. ZEEL argued that the assure was restricted and didn’t cowl your entire debt.

According to the NCLT Mumbai Bench order, ZEEL, the company guarantor for a mortgage taken by Siti Networks (the principal borrower of IDBI Bank), had defaulted inside the specified interval below Section 10A.

However, IDBI Bank contended that the default occurred earlier than the Section 10A interval. The financial institution claimed that the default stemmed from a debt service reserve account (DSRA) assure supplied by ZEE to safe loans given by IDBI Bank to Siti Networks Ltd, each of which had been a part of the Essel Group.

Earlier, IndusInd Bank had filed an utility towards ZEE, which was accepted by the NCLT on 22 February. Yet, the NCLAT granted reduction towards the NCLT order to ZEE in March, and ZEE later reached a settlement with IndusInd Bank.

Both IndusInd Bank’s and IDBI Bank’s claims had been contested by ZEE, totally on the grounds that the assure was invoked throughout the pandemic.

Meanwhile, Punit Goenka, the previous MD & CEO of Zee Entertainment Enterprises Ltd, moved the Securities Appellate Tribunal (SAT) to problem a current confirmatory order issued by the Securities and Exchange Board of India (SEBI).

On Wednesday, SAT expressed dissatisfaction with SEBI’s order that prohibited Punit Goenka from holding key managerial positions inside Zee group corporations.

On 14 August, SEBI’s confirmatory order restrained Punit Goenka and his father Subhash Chandra from holding such positions in any listed firm or Zee group entity till additional discover

Updated: 31 Aug 2023, 02:21 PM IST