Managing Director and Chief Executive Officer of Zee Entertainment Enterprises Punit Goenka has approached the National Company Law Appellate Tribunal (NCLAT) at New Delhi against an order of the National Company Law Tribunal (NCLT) Mumbai initiating the Corporate Insolvency Resolution Process (CIRP) against the media company.

On February 22, an NCLT Bench of Judicial Member Justice HV Subba Rao and Technical Member Madhu Sinhathe had passed an order allowing an application filed by IndusInd Bank under the Insolvency and Bankruptcy Code (IBC) seeking CIRP proceedings against Zee.

This order has been challenged by Goenka in NCLAT through a petition filed on February 23. The same is yet to be listed for hearing.

This development is likely to affect the potential merger between Zee and Sony Pictures Networks India (SPNI).

While Zee had been seeking approval of the merger, Axis Finance, IDBI Bank and IndusInd bank are opposing the same as debtors of the company, while the Indian Performing Rights Society Ltd (IPRS) is opposing as an operational creditor and claimant of the company.

IndusInd had approached NCLT against Zee for resolution of a total financial debt of ₹92,74,25,742 (over ninety crore).

Zee then filed a cross application challenging the maintainability of the petition by the bank. However, the Tribunal rejected the cross application filed by Zee and allowed IndusInd’s petition. The Tribunal had also rejected the oral request by Zee to stay the order for a period of two weeks.

It proceeded to appoint Sanjeev Kumar Jalan, Partner at BDO India LLP, as an interim resolution professional. BDO is an international network of accounting, tax and advisory firms.

Before the NCLT, Senior Advocate Ravi Kadam appeared for IndusInd Bank while Senior Advocate Zal Andhyarujina appeared for Zee.