Insolvency plea filed against ZEEL by IPRS claiming Rs. 211 crore at NCLT Mumbai
The Indian Performing Right Society (IPRS) Ltd has filed an application against Zee Entertainment Enterprise Ltd (ZEEL)
Insolvency plea filed against ZEEL by IPRS claiming Rs. 211 crore at NCLT Mumbai
The Indian Performing Right Society (IPRS) Ltd has filed an application against Zee Entertainment Enterprise Ltd (ZEEL) under Insolvency and Bankruptcy Code, 2016 (IBC) at the National Company Law Tribunal (NCLT) Mumbai to invoke corporate insolvency resolution process (CIRP). ZEEL contended that it "will be filing its reply rejecting the claim on, inter alia, the ground that there is a pre-existing dispute between the parties on the claimed amount."
IPRS, which is a non-profit society comprising authors, composers, and music publishers, had filed an application under Section 9 of the IBC as an operational creditor claiming dues towards royalty payable for utilisation of "literary and musical works", claiming a debt and default of Rs 211 crore.
IPRS allows usage of copyrighted music by users by issuing them licences and collect royalties on behalf of IPRS members including authors, composers, and publishers of music. After deducting IPRS's administrative costs the royalty is distributed between its members.
However, ZEEL has argued that it will be filing its reply denying the said claim since there is a pre-existing dispute between them on the said claim. ZEEL added, "that the claim is not in 'consonance with the interpretation of the law' on the point of payment of royalties for literary and musical works by the Delhi High Court, and hence, the claimed amount is not due or payable to IPRS."
On 14 December, 2022 IDBI bank a financial creditor had sought to NCLT- Mumbai against ZEEL seeking to initiate bankruptcy proceeding against the media firm in order to recover dues of Rs. 150 crore. The media major had disputed the claim, saying that it had disputed the claim, saying that it had arisen under a debt service reserve agreement signed between them 'for the financial facility availed by Siti Networks.'
The present application filed by the IPRS is currently pending at the NCLT Mumbai bench.