IDBI Bank moves NCLT with fresh insolvency plea against Zee Entertainment

New Delhi, Sep 10 (PTI) IDBI Bank has filed a fresh plea in the National Company Law Tribunal (NCLT) seeking insolvency against media and entertainment firm ZEE.

In its petition at the Mumbai bench of NCLT, IDBI Bank, claiming to be a financial creditor of the company, has claimed a purported default of Rs 225.22 crore, according to a regulatory filing from the Zee Entertainment Enterprises Ltd (ZEEL).

IDBI Bank's claim, filed under section 7 of the Insolvency & Bankruptcy Code (IBC), arises under a Debt Service Reserve Agreement entered into by the private sector lender and the company for credit facilities availed by Siti Networks Ltd.

Terming the new application as "malicious, fraudulent and meritless", ZEE in the regulatory updates said it has been filed "with mala fide intent to harass and cause disrepute" to the company.

"The company vehemently disputes the bank's claims and is taking necessary and appropriate steps to contest the same. The company may also adopt legal remedies against the bank, including for malicious prosecution, defamation and damages, as may be advised to it," it said.

In 2022, IDBI Bank had filed a Section 7 plea to initiate the Corporate Insolvency Resolution Process (CIRP) against the company for the same purported debt forming subject-matter of the present application.

"The said application filed by the Bank in 2022 was dismissed by the NCLT vide its order dated May 19, 2023. An appeal filed by the bank before the National Company Law Appellate Tribunal, Delhi, challenging the said order dated May 19, 2023, was also dismissed vide an order dated 7th April 2025," it said.

The company does not expect any financial implications from IDBI's plea. PTI KRH HVA