Zee argues only Indian court can decide the fate of $10 billion merger with Sony

Zee Enterprises wants the National Company Law Tribunal (NCLT) to make Sony Pictures Network India (now Culver Max Entertainment) to go through with the proposed merger — that would have created a $10 billion media giant — that the Japanese media giant recently walked out of.

Not just that, the company controlled by Punit Goenka (Managing Director and CEO of Zee) wants the dispute to be settled within India.

The NCLT (a quasi judicial body that rules on matters pertaining to the Companies Law)  has asked Sony to respond to Zee's appeal within the next two weeks. The case will be next heard by the judges on March 12.

The move from Zee has come days after Sony alleged that the management of Zee had breached the terms of the proposed merger agreement, which was agreed upon in September 2021 and later called-off by Sony in January 2024.

After calling-off the deal, Sony wanted an urgent hearing at the Singapore International Arbitration Centre but sources told CNBC-TV18 that while the arbitration could still go on, the emergency of the matter had been denied.

The Mumbai-based network Zee now argues that only the NCLT has exclusive jurisdiction to decide the fate of the merger.

Zee also called Sony's demand for $90 million in termination fees 'legally untenable'.

Separately, Mad Men Film Ventures, a shareholder of Zee Entertainment Enterprises, had earlier in January filed a petition requesting both parties to implement the merger as it was approved by the NCLT in August 2023.

NCLT will also hear Mad Men Film Ventures’ application on March 12.