It started in 2021, when IndusInd had first approached the Delhi High Court and later last year in February it filed a case against ZEE under section 7 of the Insolvency and Bankruptcy code for initiating corporate insolvency resolution process against it for seeking payment of dues worth ₹90 crore. IndusInd and ZEE were locked in a legal tussle wherein the private lender was seeking payment of its dues. The media firm claimed that the bank made the demand for an accelerated amount which was the entire loan amount advanced by the bank to Siti on account of the shortfall in the DSRA Account. On 1 October 2020, IndusInd Bank issued a notice to ZEE invoking the DSRA agreement and asked it to pay ₹83.7 crore. The matter pertains to a loan taken by Siti Networks, where ZEE was the guarantor of the loan under the terms of the Debt Service Reserve Account Guarantee Agreement (DSRA) on 29 August 2018. The NCLAT in its verdict granted relief to the Subhash Chandra- owned media company by staying the insolvency proceedings initiated by IndusInd Bank.Īt the same time, the dedicated bankruptcy court had also admitted a similar insolvency application against Essel Group’s Siti Networks Ltd, filed by the same financial lender. This order, however, was immediately challenged by Punit Goenka, before the appeals court. In February, the National Company Law Tribunal (NCLT) had admitted an insolvency petition against ZEE by IndusInd under Section 7 of the Insolvency and Bankruptcy Code (IBC). Separately, insolvency applications by Axis Finance and IDBI against ZEE are pending before the bankruptcy court.
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