NCLT defers hearing on Zee-Sony merger to June 26, status remains on hold

Delhi : National Company Law Tribunal has postponed its impending hearing on the prospective Zee-Sony merger. Zed Entertainment Enterprises Ltd will merge with a subsidiary of Sony Group Corp. to form a $10 billion media conglomerate. The news comes only days after the SEBI barred Punit Goenka and Essel Group chairman Subhash Chandra from holding any significant managerial posts.

The matter was supposed to be heard on Friday. The tribunal has now rescheduled the hearing for June 26. The NCLT had ordered the NSE and BSE to rethink their approval of the Zee-Sony merger, but the ruling was eventually overturned by the National Company Law Appellate Tribunal. A two-member NCLAT court made the observation that the ruling had violated the "principle of natural justice" at the end of May. It was noticed that Zed Entertainment, a company managed by Subhash Chandra and a member of the Essel Group, had not been given the chance to comment on the matter of Shirpur Gold Refinery.

The NCLT had been given a second chance to decide the case by the appeal body. The NCLT will hear from both sides before passing a new order. After the BSE and NSE counsels brought up new issues about the merger plan and emphasised the Sebi judgement regarding the Shirpur Gold Refinery, the NCLT issued its ruling on May 11. The names of the Zed promoters have been mentioned in connection with the money-diversion there.

The exchanges should also assess and confirm that the scheme's non-compete provision has been reviewed and authorised by them and SEBI, and that the method of payment of non-compete fee from one Mauritius Entity to another is in accordance with SEBI rules in this respect, according to the NCLT.