Insolvency plea against ZEEL for music royalty payment default
The plea has been filed by Indian Performing Right Society in NCLT
The Indian Performing Right Society (IPRS) has reportedly moved the National Company Law Tribunal (NCLT) against Zee Entertainment Enterprises Limited (ZEEL) claiming a default of payment.
According to IPRS, the media group has claimed a default of Rs 211.4 crore in music royalty payments.
The body representing music artistes has urged the tribunal to initiate a corporate insolvency resolution process (CIRP) against ZEEL.
"A Petition has been filed against the Company under Section 9 of the IBC by the IPRS, an Operational Creditor, before the NCLT, Mumbai Bench for initiation of Corporate Insolvency Resolution Process against the company, claiming a debt and default of Rs 211.41 crore towards royalty payable for utilization of 'literary and musical works'," a leading business publication quoted ZEEL as saying.
However, ZEEL added that the claim is not in "consonance with the interpretation of the law" on the point of payment of royalties for "literary and musical works" by the Delhi High Court, and hence, the "claimed amount is not due or payable to IPRS", the report mentioned.
