Axis Finance and IDBI Bank withdraw petitions against Zee-Sony merger

Axis Finance, IDBI Bank, and IDBI Trusteeship Services have withdrawn their petitions from the National Company Law Appellate Tribunal (NCLAT). These petitions were previously filed against the NCLT's order approving the merger of Zee Entertainment with Sony Pictures Networks India. The NCLAT allowed the withdrawal, referencing the NCLT’s earlier recall of its August 10, 2023, order approving the $10 billion (approximately Rs 83000 crore) merger.

"Learned counsel for the appellants submit that the NCLT has already withdrawn the Merger Scheme. Hence, the appellants pray to be permitted to withdraw the appeals. Prayer is allowed, and appeals are dismissed as withdrawn," ruled the bench, led by NCLAT Chairperson Justice Ashok Bhushan and Member Barun Mitra.

Earlier this month, the Mumbai bench of the National Company Law Tribunal (NCLT) withdrew its August 10, 2023 order, which had previously approved the merger between Zee Entertainment and Sony Pictures Networks India.

The withdrawal followed an application by Zee Entertainment to rescind the merger approval. The company stated that the Composite Scheme and the Merger Cooperation Agreement, which were initially put in place, are now void. Consequently, the merger closing date has not been met, and the scheme has not become effective.

In August 2023, Zee Entertainment and Sony Pictures Networks India resolved their six-month-long dispute over a failed $10 billion merger, agreeing to withdraw all claims against each other. The National Company Law Tribunal (NCLT) had initially approved the merger on August 10, 2023, which could have formed a $10.5 billion media entity. However, financial institutions, including IDBI Bank, Axis Finance, Imax corporation, and JC Flowers Asset Reconstruction, challenged the merger, despite NCLT dismissing some of their applications opposing the merger.