Sony moves NCLT against Zee plea seeking enforcement of merger
Sony's Indian subsidiary Culver Max has moved an application before NCLT Mumbai, challenging the maintainability of a plea by Zee that is seeking the implementation of the merger.
In the latest salvo fired by Sony, its Indian subsidiary Culver Max has moved an application before NCLT Mumbai, challenging the maintainability of a plea by Zee that is seeking the implementation of the merger.The application by Sony cites the arbitration clause in the agreement arrived at between the two sides. Sony has claimed that having agreed upon an arbitration clause, any dispute should be argued and decided through arbitral proceedings.The NCLT has agreed to heat Sony's application. The Mumbai bench of the NCLT has issued a notice to Zee, seeking its response. The NCLT has scheduled this plea for hearing, along with other applications in this dispute, on March 12.
Reacting, Zee shares declined on BSE.
Sony had initiated arbitration proceedings in Singapore. Sony had claimed that the NCLT approval for the merger was conditional. Sony claims that Zee failed to meet the prescribed conditions and that Sony was within its rights to terminate the merger. Sony had raised claims of ₹750 crore, in arbitration proceedings, as a termination fee.On February 4, the Emergency Arbitrator in Singapore rejected a plea by Sony seeking to retrain Zee from seeking enforcement of the merger in India.Post the Emergency Arbitrator order, Zee had pressed its application before NCLT Mumbai, seeking enforcement of the merger with Sony. Zee had proposed a committee consisting of two directors each, from Zee and Sony, for executing the merger. On February 6, NCLT issued notice to Sony on Zee's plea.Previously, in December 2023, a Zee shareholder Mad Men Films had also moved NCLT seeking enforcement of the merger.(Edited by : Amrita)
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