IPRS Files Insolvency Petition Against Zee Entertainment

Zee Entertainment Enterprises Ltd. said its operational creditor Indian Performing Right Society Ltd. (IPRS) filed a petition to initiate corporate insolvency resolution process (CIRP) against the company.

The IPRS, a representative body of owners of music, is claiming a debt and default of over 211.42 crore rupees ($25.53 million) toward royalty payable for utilization of “literary and musical works,” the Indian media and entertainment company said in a stock exchange announcement.

The body, which looks after copyrights for authors, composers and publishers of music, filed the petition before the Mumbai bench of the National Company Law Tribunal (NCLT) under Section 9 of the Insolvency and Bankruptcy Code 2016.

Zee said it will file its reply, rejecting the IPRS’ claim on the ground that there is a pre-existing dispute between the parties on the claimed amount.

In addition, the claim is also not in consonance with the interpretation of the law on the point of payment of royalties for “literary and musical works” by the Delhi High Court, and hence, the claimed amount is not due or payable to the IPRS, the company noted.

Zee, which is also facing an insolvency petition from its financial creditor, said the likely financial implications on the company due to compensation and penalty is not confirmed as the matter is disputed and sub-judice.

In December 2022, IDBI Bank filed a petition to start a CIRP against Zee, claiming a default of about 150 crore rupees. The company is vehemently disputing IDBI Bank’s claim in other proceedings filed by the bank against Zee for recovery of its “alleged” dues.

(Note: $1 = 82.8199 Indian rupees)