Zee-Sony merger: Singapore International Arbitration Centre refuses interim relief to Sony

The Singapore International Arbitration Centre (SIAC) on February 4 rejected a plea filed by Sony Pictures Networks India (presently known as Culver Max) seeking emergency interim relief in the case involving its merger with Zee Entertainment Enterprises..Sony approached SIAC seeking directions to prevent Zee from seeking legal remedies from other legal forums including the National Company Law Tribunal (NCLT) Mumbai.However, the plea was rejected by SIAC. “It held that the emergency arbitrator has no jurisdiction or authority to injunct the Company from approaching the NCLT to implement the Merger Scheme since these are matters which fall within the statutory system and are for the NCLT to decide,” said a filing by Zee before the stock exchange..The merger between Sony and Zee was announced on December 22, 2021, but was called off by Sony Pictures recently.Zee thereafter approached the NCLT seeking enforcement of the scheme, which the tribunal had approved in August 2023 despite opposition from creditors like Axis Finance, JC Flower Asset Reconstruction Co, IDBI Bank, Imax Corp and IDBI Trusteeship.The petition is yet to be finally numbered by the NCLT Registry and will be listed for hearing in due course..Through a press release on Monday, Sony commented that it was disappointed by the SIAC’s decision.“This 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,” the company said..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 for Zee. King's counsel and senior advocate Harish Salve with Ciccu Mukhopadhaya briefed by a team from Shardul Amarchand Mangaldas appeared for Sony. .[Read exchange filing]