NCLAT clears major hurdle for merger of Zee with Sony
New Delhi, May 26
In a relief to Zee Entertainment, the National Company Law Appellate Tribunal (NCLAT) on Friday set aside the NCLT order, which directed leading bourses NSE and BSE to reconsider their approval for the Zee-Sony merger.
Against ‘principle of natural justice’
- The NCLAT Bench observed that the order passed by the Mumbai Bench of the NCLT was against the “principle of natural justice” as it did not grant any opportunity to Zee Entertainment to respond over the issue of Shirpur Gold Refinery, a Subhash Chandra-led Essel Group firm
- The appellate tribunal has sent the matter back to the NCLT to decide afresh and pass an order after hearing both parties
A two-member NCLAT Bench observed that the order passed by the Mumbai Bench of the National Company Law Tribunal (NCLT) was against the “principle of natural justice” as it did not grant any opportunity to Zee Entertainment to respond over the issue of Shirpur Gold Refinery, a Subhash Chandra-led Essel Group firm.
The appellate tribunal has sent the matter back to the NCLT to decide afresh and pass an order after hearing both parties.
“We are of the opinion that the impugned order is required to be set aside primarily on the ground of non-compliance with the principle of natural justice. Accordingly, the impugned order is set aside and the matter is remitted to the NCLT to examine the same and pass appropriate order after hearing both the parties without being influenced by this order,” said the NCLAT Bench comprising Justice Rakesh Kumar and Alok Srivastava.
Earlier on May 11, the NCLT had directed the BSE and the NSE “to review their earlier approval for Zee-Sony merger scheme and provide their fresh NOCs for the same before the next hearing date”.
