India’s National Company Law Tribunal (NCLT) permitted Zee Entertainment Enterprises Ltd. to withdraw its application for merger implementation with Sony Group’s Indian units.

The NCLT’s Mumbai bench, comprising Judicial Member Lakshmi Gurung and Technical Member Charanjeet Singh Gulati issued the oral order today. The detailed order is yet to be published on the NCLT website.

Law firms Trilegal and Shardul Amarchand Mangaldas & Co. are representing Zee Entertainment and Sony Group, respectively.

In April, Zee’s board approved withdrawing the company’s application for merger implementation with Sony units from the NCLT after a detailed consultation with legal experts and reviewing the recent action-oriented steps implemented by the management.

The Mumbai-based company filed the merger implementation application with the NCLT on 24 January, seeking directions on the implementation of the composite scheme of arrangement between Zee and Sony units, namely Culver Max Entertainment Private Ltd. and Bangla Entertainment Private Ltd.

The development came after Sony units scrapped their proposed merger with Zee, as well as invoked the arbitration clause and sought a termination fee of $90 million from Zee alleging the company breached the terms of the agreement signed in December 2021.

This promoted Zee to also initiate legal proceedings to contest against Sony's claims in Singapore as well as file an application with the NCLT to implement the $10 billion scrapped merger deal.

(Send feedback to editor@cornerofficejournal.com)

India Watch List For Tuesday - April 23