NCLT admits Zee plea over Sony calling off merger | India Business News – Times of India

MUMBAI: The NCLT on Tuesday admitted Zee‘s petition seeking to direct Sony to implement the merger, which was approved by the tribunal.
Separately, the Singapore International Arbitration Centre will deal with Sony’s plea on Zee breaching the merger pact on Wednesday.
At the NCLT, Sony defended its position citing that the merger proposal approved by the tribunal was dependent on conditions either being fulfilled or waived off in writing.It also contended that the petition was moved by Mad Men Film Ventures, a proxy shareholder of Zee.
NCLT asked Sony who was the adjudicating authority responsible for determining whether conditions were met. It ruled that it will adjudicate the matter and directed Sony to file its reply to Mad Men’s petition within three weeks. The matter will be heard on March 12, where deliberations on the fulfilment of merger conditions are expected to take place.
On Jan 22, Sony terminated the merger pact with Zee, citing non-fulfilment of conditions. Zee had denied Sony’s allegations and said that its $90 million termination fee demand was “legally untenable”.
In its 62-page termination notice, Sony said, as quoted by Reuters, that the Indian broadcaster had failed to take “commercially reasonable” efforts to meet certain financial thresholds.



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