IndusInd Bank says all dues cleared by ZEEL, NCLAT disposes of appeal

Zee Entertainment and IndusInd Bank, on Monday, said that the company had cleared all the dues to the bank, and as a result, the National Company Law Appellate Tribunal (NCLAT) disposed of the appeal, Moneycontrol reported.

The tribunal has asked both parties to pay the cost of the interim resolution professional for the period the case was under the resolution process. The NCLAT has also set aside NCLT’s order allowing the admission of ZEEL for insolvency.

In February, NCLT’s Mumbai bench had admitted insolvency proceedings against ZEEL in a plea filed by IndusInd Bank. The bank said that Zee was a guarantor for its Rs 150 crore loan to Eseel Group’s Siti Networks, but it failed to honour the agreement. IndusInd bank said there was a shortfall of Rs 83 crore.

Later, Punit Goenka of ZEEL appealed against the order in NCLAT. In February itself, the NCLAT stayed NCLT’s order directing the initiation of insolvency proceedings against ZEEL.

In March, however, both parties informed NCLAT that they had reached an agreement and the dues would be settled by June 30 or within seven days of the Zee-Sony merger. NCLAT then ordered the Zee-Sony merger to go forward without considering the litigation.

IndusInd Bank had then informed the tribunal that it would withdraw its objections. The case was then listed to be heard today.