NCLAT dismisses IDBI Bank’s plea against Zee

The IDBI Ltd. bank headquarters in Mumbai
| Photo Credit:
Indranil Aditya

National Company Law Appellate Tribunal (NCLAT) on Monday dismissed IDBI Bank Ltd’s petition against ZEE Entertainment Enterprises Ltd seeking insolvency proceedings against the company, upholding the decision pronounced by National Company Law Tribunal (NCLT), as per a release by Zee’s Corporate Communications person.

In the NCLT ruling, IDBI Bank had said it was unable to recover unpaid dues of around ₹150 crore from Zee. According to media reports, NCLAT upheld the lower court’s view but also gave the bank the liberty to initiate fresh proceedings for any default outside the period protected under Section 10A of the Insolvency and Bankruptcy Code (IBC), 2016.

As per media reports, the tribunal held that the bank’s claim was unsustainable as ZEEL’s liability under the guarantee agreement was limited to maintaining two quarters’ interest on the original sanctioned limit of ₹50 crore, not the entire outstanding amount.