Singapore International Arbitration Centre Refuses Interim Relief To Sony In Its Merger Deal With Zee
Singapore International Arbitration Centre Refuses Interim Relief To Sony In Its Merger Deal With Zee
The union between the two entities was announced on 22 December 2021
The Singapore International Arbitration Centre (SIAC) has rejected a plea filed by Sony Pictures Networks India (now known as Culver Max), seeking emergency interim relief in the case involving its merger with Zee Entertainment Enterprises.
Sony had approached SIAC seeking directions to prevent Zee from seeking legal remedies from forums including the National Company Law Tribunal (NCLT), Mumbai.
However, the SIAC rejected the plea.
In a filing before the stock exchange, Zee reasoned, “The emergency arbitrator has no jurisdiction or authority to injunct the company from approaching the NCLT to implement the merger scheme since these matters fall within the statutory system and are for the NCLT to decide.”
The merger between Sony and Zee was announced on 22 December 2021. However, it was recently called off by Sony. After which, Zee approached the NCLT seeking enforcement of the scheme.
In August 2023, the tribunal approved it despite opposition from creditors including Axis Finance, JC Flower Asset Reconstruction Co, IDBI Bank, Imax Corp, and IDBI Trusteeship.
The petition, yet to be numbered by the NCLT Registry, would then be listed for a hearing.
In a press note issued by Sony, the latter displayed its disappointed over the decision of the SIAC.
The company stated, “The decision is only a procedural one, ruling only as to whether Zee Entertainment would be permitted to pursue its application with the NCLT. We will continue to vigorously arbitrate the matter in Singapore in front of a full SIAC tribunal pursue SPNI’s right to terminate the merger agreement and seek a termination fee and other remedies. We remain confident in the merits of our position in both Singapore and India.”
Senior advocates Davinder Singh and Janak Dwarkadas briefed by a team from Cyril Amarchand Mangaldas comprising Cyril Shroff, L Viswanathan, Indranil Deshmukh, and Gathi Prakash appeared on behalf of Zee.
King's Counsel and senior advocate Harish Salve with Ciccu Mukhopadhaya, briefed by a team from Shardul Amarchand Mangaldas represented Sony.
