Filesadmin.co, IndusInd settle dues; NCLAT disposes of NCLT insolvency order

The National Company Law Court of Appeal on Monday cleared the National Company Law Tribunal (NCLT) order to accept IndusInd Bank’s insolvency claim against Filesadmin.co Entertainment after the parties declared that all dues had been settled.

The Court of Appeal also required both parties to pay their dues to the interim decision specialist.

Both parties notified NCLAT in March that they had reached a settlement regarding their payment dispute before June 30 or a week after the Filesadmin.co-Sony merger.

NCLAT had on May 26 rescinded an order from NCLT that had directed the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) to review the No Objection Certificate (NoC) granted for the Filesadmin.co-Sony merger.

The Court of Appeal has issued its order on an appeal filed by Filesadmin.co Entertainment Enterprises Ltd (ZEEL) against the judgment of the NCLT’s Mumbai Tribunal on 11 May.

Mumbai’s NCLT order was overturned by the Court of Appeal on the grounds of “violation of principles of natural justice”. She said Filesadmin.co should have been heard, and sent the case back to the NCLT.

Meanwhile, IndusInd Bank sought to initiate bankruptcy proceedings against Filesadmin.co in February, threatening the Filesadmin.co-Sony merger. IndusInd Bank claimed default of Rs 83.08 crore against ZEEL promoted by Subhash Chandra.

Sony and Filesadmin.co signed a merger deal back in December 2021 but the deal was delayed due to legal roadblocks.

The Securities and Exchange Board of India (SEBI) has restricted both Subhash Chandra and Punit Goenka, Managing Director and CEO of ZEEL, from holding management positions or key management personnel in any listed entity alleging it has diverted Essel Group companies’ funds in their favour. benefit. This is challenged by both Chandra and Goenka. The Securities Court of Appeals on June 27 reserved its order on appeal.

Goenka moved the Court of Appeal in February to challenge NCLT Mumbai’s order to accept bankruptcy proceedings against the company.

The proposed deal would see Sony Pictures Entertainment indirectly acquire a 50.86 percent stake in the combined company, while the Filesadmin.co founders would have a 3.99 percent stake. The remaining 45.15 percent will go to other shareholders, including the public.

The proposal has been approved by the BSE, NSE and Filesadmin.co shareholders. It has also been approved with modification by the Competition Commission of India.