Alka Verma-
Published On: October 07, 2021 at 11:48 IST
Zee Entertainment Enterprises Limited filed a Plea before National Company Law Appellate Tribunal (NCLAT) regarding an order of National Company Law Tribunal (NCLT).
The Order of NCLT asked Zee to respond till Thursday regarding a Petition filed by Invesco and OFI Global China.
On Tuesday, NCLT ordered Zee to state their official replies against the cases filed by Invesco Developing Markets Fund and OFI Global China Fund LLC.
Zee, in its reply stated that the time provided by NCLT is not enough to file and official comprehensive reply.
“The NCLT gave an unrealistic time of effectively 36 hours to file reply in complete violation of principles of natural justice,” stated Zee in its Appeal.
Also, Zee stated that as the Tribunal is relied to continue with the last hearing on Friday, it is looking for a Stay on procedures in Mumbai till its allure is heard and chosen.
The Case is all about an order to call the Extraordinary General Meeting (EGM), which was requested by two foreign companies, who also claimed that they hold around 18% of shares in Zee.
The sole motto of the EGM was to remove Zee’s chief executive and managing director Punit Goenka from his position and to reconstitute a new body of boards comprising 6 independent directors.
The Foreign Companies stated that these changes were helpful in the protection of their rights.
The Counsels who were appearing for the shareholders stated that the call for EGM is valid if the stakeholders are only satisfied through the changes.
On the other hand, Zee after holding a board meeting cancelled the order to call EGM and stated that the order has no legal validity.
Following the incident, Invesco moved to NCLT and from then the matter was being heard in NCLT.
Zee, in its appeal before NCLAT emphasized this point and stated that Invesco moved to NCLT before the statutory 21 days was over and also all the arguments were made to seek a ‘final relief at the interim stage of case’.
Zee also stated that it opposed the matter to provide final relief and asked time for filing replies.
It should be noted here that on September 30 NCLT had asked Zee to consider notice for arranging an EGM.
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