# In the matter of Zee Entertainment Enterprises Limited I.A. 742-2022 And C.P.(IB)-221-(MB)-2022

> NCLT judgment dated 2023-02-22. Citation: TCN-2023-NCLT-04494. IndusInd Bank Limited, the Financial Creditor, filed a Company Petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 22 Feb 2023
- **Citation:** TCN-2023-NCLT-04494
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/zee-entertainment-enterprises-limited-ia-742-2022-and-cpib-221-mb-2022-abd2bb3a

## Summary

### Background

IndusInd Bank Limited, the Financial Creditor, filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Zee Entertainment Enterprises Limited, the Corporate Debtor, for a total financial debt of Rs. 92,74,25,742.00. The Corporate Guarantor, ZEEL, was directed to file a reply. However, instead of filing a reply, ZEEL filed I.A. 1378/2022 challenging the maintainability of the Company Petition. A conditional order was passed directing the Respondent to file a reply, failing which their right to file a reply would be forfeited. Despite this, ZEEL did not file a reply and contended that they need not file a reply until their maintainability application was decided. ZEEL

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## Facts

IndusInd Bank Limited filed a Company Petition seeking to initiate CIRP against Zee Entertainment Enterprises Limited (ZEEL) due to a financial debt of Rs. 92,74,25,742.00. ZEEL, as the Corporate Guarantor, was directed to file a reply but instead filed I.A. 1378/2022 challenging the maintainability of the petition. A conditional order was passed requiring ZEEL to file a reply within two weeks, failing which their right to reply would be forfeited. ZEEL did not comply and filed I.A. 742/2022 to delete an earlier order. The court dismissed both I.A. 1378/2022 and I.A. 742/2022. The key fact is ZEEL's failure to file a reply and its attempt to challenge the maintainability of the petition through interlocutory applications, which were ultimately dismissed. This led to

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## Issues and analysis

### Issue 1: Whether the Company Petition No. (IB) 221(MB)/2022 should be admitted for the initiation of …

**Ratio:** The ratio is that if a corporate debtor is in default of a financial debt exceeding the

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**Reasoning:** The court reasoned that since the maintainability application (I.A. 1378/2022) and the

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**Interpretation:** The interpretation is that the Adjudicating Authority has the power to admit a

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**Application:** The ratio and reasoning were applied to the facts of the case, where the

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## Parties

- **Judges:** H.V. Subb…; Madhu S…
- **Respondents:** ZEE Entertainment…; Zal T Andhyarujina…

## Timeline

- **2022-03-01 — Order Directi…**: The Corporate Guarantor, ZEEL, was directed…
- **2022-07-11 — Conditional…**: A conditional order was passed directing the Respondent to file a reply within two weeks,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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