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Synopsis

The National Company Law Tribunal has granted three weeks to Sony Pictures Pvt Ltd to file its reply to the application seeking to implement the $10 Billion merger between Zee and Sony.

A bench comprising Judicial Member Lakshmi Gurang and Chiranjeet Singh Gulati was hearing an application filed by Mad Men Films Ventures, a shareholder of Zee.

The $10 Billion merger between Zee and Sony was announced on 21st December 2021. The scheme was approved by the National Company Law Tribunal in August 2023. However, Sony recently called off the merger.

The scheme was approved by the NCLT despite opposition from creditors, including IDBI Bank, Axis Finance, and IDBI Trustee.

Sony Pictures Networks India (now known as Culver Max Entertainment) issued a notice to Zee Entertainment Enterprise on January 22, 2024, terminating the merger, citing the failure to reach an agreement within the deadline set in December 2021.

The NCLT bench in Mumbai was informed that Sony was served after filing the petition before the NCLT, but there was no response from Sony.

Advocate Shyam Kapadia, representing Mad Men Film Ventures, submitted that there was a dispute between the companies regarding who would lead the resulting company.

“It appears from the media reports that there was a dispute between ZEE and Sony on who would lead the resulting company post the merger, even though the scheme of arrangement clarified who would head the merger as the CEO of the company. They did not want Punit Goenka to be the CEO. So therefore this application was filed," Kapadia said.

Senior Advocate Darius Khambata, representing Sony, submitted that the application ought to be dismissed as it was not maintainable.

Senior Advocate Janak Dwarkadas, appearing for Zee, sought time to file a reply to the application.

Case title: Mad Men Film Ventures vs Sony Pictures Network & Ors