Zee asks Sony to withdraw termination of merger, urges NCLT to act

Subject: Economy

Section: Capital market

Context:

Zee Entertainment Enterprises Ltd. (ZEEL) asked Culver Max Entertainment Pvt. Ltd (formerly Sony Pictures Networks India Private Ltd.) (Culver Max) and Bangla Entertainment Pvt. Ltd. (BEPL) to immediately withdraw their termination of the Merger Cooperation Agreement (MCA) and confirm that they would perform their obligations to give effect to and implement the Merger Scheme that had been sanctioned by the National Company Law Tribunal.

National Company Law Tribunal (NCLT)

It is a quasi-judicial authority incorporated for dealing with corporate disputes that are of civil nature arising under the Companies Act,2013.
Established: It was constituted on 1 June 2016 under the Companies Act,2013.
Committee: NCLT was formed based on the recommendation of the Balakrishna Eradi committee on law relating to the insolvency and the winding up of companies.
Composition: The NCLT shall consist of a President and such number of Judicial and Technical Members as may be required.

Powers:

It is not limited or bound by the rules laid down in the Code of Civil Procedure and is guided by the principles of natural justice, subject to the other provisions of this Act and of any rules that are made by the Central Government.
The NCLT can enforce any order that it gives in the same manner as a court would enforce it.
NCLT has the power to scrutinize its own orders.
The tribunal has the power to regulate their own procedure.
National Company Law Tribunal is the adjudicating authority for the insolvency resolution process of companies and limited liability partnerships under the Insolvency and Bankruptcy Code, 2016.