Victory for Zee Entertainment: NCLAT Dismisses IDBI Bank’s Appeal Amid Pandemic Default Debate

In a major relief to Zee Entertainment Enterprises Limited (ZEEL), the National Company Law Appellate Tribunal (NCLAT) on Tuesday rejected the insolvency petition moved by IDBI Bank. The appellate tribunal maintained the previous order of the National Company Law Tribunal (NCLT), which had turned down IDBI Bank's petition on the basis that it was not qualified under Section 10A of the Insolvency and Bankruptcy Code (IBC). The section bars insolvency proceedings against defaults made during the pandemic relief period from March 25, 2020, to March 25, 2021.

 

NCLAT order grants IDBI Bank freedom to approach a new plea for defaults beyond the Section 10A timeline. The battle was fought due to default on a Siti Networks loan on which ZEEL had extended a corporate guarantee. Even after this triumph, ZEEL shares dipped 7% today on the Bombay Stock Exchange.

Source: Moneycontrol