BREAKING: NCLAT stays NCLT order initiating insolvency process against Zee in plea by IndusInd Bank

The National Company Law Appellate Tribunal (NCLAT) on Friday stayed an order passed by the National Company Law Tribunal (NCLT) at Mumbai initiating the Corporate Insolvency Resolution Process (CIRP) against Zee Entertainment Enterprises in a petition filed by IndusInd Bank..A Bench of NCLAT Chairperson Justice Ashok Bhushan and Member (Technical) Barun Mitra stated in its order,"Issue notice to respondents. Reply in two weeks, rejoinder in two weeks thereafter. List for final disposal on March 29. Till that time, the order dated February 22 is stayed.".Appearing for IndusInd Bank, Senior Advocate Rajiv Nayar argued,"They have been going to one court or other, taking their chance. Today, they can't argue that they have not been heard. I am a public institution and more than ₹180 crore is due.".On the other hand, Senior Advocate Arun Kathpalia, representing Zee, contended,"The NCLT order is in complete violation of principles of natural justice.".On February 22, an NCLT Bench of Judicial Member Justice HV Subba Rao and Technical Member Madhu Sinhathe had passed an order allowing an application filed by IndusInd Bank under the Insolvency and Bankruptcy Code (IBC) seeking CIRP proceedings against Zee.IndusInd had approached NCLT against Zee for resolution of a total financial debt of ₹92,74,25,742 (over ninety crore).Zee then filed a cross application challenging the maintainability of the petition by the bank. However, the Tribunal rejected the cross application filed by Zee and allowed IndusInd’s petition. The Tribunal had also rejected the oral request by Zee to stay the order for a period of two weeks.It proceeded to appoint Sanjeev Kumar Jalan, Partner at BDO India LLP, as an interim resolution professional. BDO is an international network of accounting, tax and advisory firms.This prompted Goenka to approach the NCLAT in appeal..Punit Goenka moves NCLAT against NCLT Mumbai order initiating insolvency process against Zee.Senior Advocates Mukul Rohatgi, Arun Kathpalia, Advocates Abhijeet Sinha, Bindi Dave, Aman Raj Gandhi, Vardaan Bajaj, Parthasarathy Bose, Pranay Tuteja, and Diksha Gupta briefed by Wadia Ghandy and Co. represented the appellants.