IDBI Bank approaches NCLAT after NCLT rejects plea against ZEE

The hearing has been listed for today

by exchange4media Staff
Published: Aug 2, 2023 2:58 PM | 1 min read

The IDBI Bank has reportedly moved the National Company Law Appellate Tribunal (NCLAT) against Zee, challenging the order passed by National Company Law Tribunal (NCLT), which rejected its plea to initiate insolvency against the media company.

The petition for the same has been listed for hearing today before a bench comprising Justice Ashok Bhushan and Member Barun Mitra.
Zeel informed in a regulatory filing that an appeal has been filed by IDBI Bank Limited before the NCLAT, Delhi, challenging the order passed by the NCLT dated May 19, 2023.

NCLT's order said that ZEEL was the corporate guarantor for the load taken by Siti Networks. However, the default was committed during the timeline specified under section 10A of the IBC.

According to section 10A, no application for corporate insolvency resolution process can be filed against any debtor by any financial and operational creditor for any default arising on or after March 25, 2020, for a one-year period.

The provision was inserted by the government in IBC to aid companies after the resumption of economic activities post-lockdown.