The NCLT has agreed to hear a plea from Mad Men Film Ventures, a Zee Entertainment shareholder, regarding the terminated Zee-Sony merger. Legal disputes surround the implementation timeline.
New Delhi, January 30, 2024 – In a significant development, the National Company Law Tribunal (NCLT) has agreed to hear a plea from Mad Men Film Ventures, a shareholder of Zee Entertainment Enterprises Ltd., regarding the terminated merger with Sony Group Corp.’s Indian subsidiary.
Mad Men Film Ventures approached the NCLT, urging both Zee and Sony to proceed with the merger that had initially received approval from the tribunal in August last year. The shareholder’s representative emphasized the NCLT’s prior sanction of the proposal and called for the immediate implementation of the merger.
However, Sony’s legal team contested this, pointing to a conditional approval clause in the merger cooperation agreement. The clause specifies that NCLT’s approval is subject to various conditions, which may be fulfilled or waived off in writing. This led to a legal tussle between Mad Men and Sony, with both sides presenting their arguments before the NCLT.
In a decisive move, the NCLT dismissed Sony’s contentions and raised questions about the adjudicating authority responsible for determining the fulfillment of specified conditions. The tribunal asserted its role as the adjudicating authority in this matter and issued a notice to Sony, instructing them to respond to the shareholder’s petition within three weeks.
The next hearing is scheduled for March 12, where further deliberations on the merger and the fulfillment of conditions are expected to take place. The legal battle between Mad Men and Sony adds a new chapter to the ongoing saga surrounding the Zee-Sony merger, leaving stakeholders eagerly awaiting the tribunal’s decision.