National Company Law Appellate Tribunal: A Division Bench comprising of Rakesh Kumar, J. and Dr. Alok Srivastava (Technical Member) set aside the order passed by Adjudicating Authority directing the stock exchanges to reconsider their initial approvals regarding the merger of Zee Entertainment Enterprises Ltd. with Culver Max Entertainment on the ground of “non-compliance of the principle of natural justice.”
In the instant matter, the Adjudicating Authority vide order dated 11-05-2023, directed the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) to issue updated no-objection certificates regarding the merger of Zee Entertainment Enterprises Ltd (Zee) with Culver Max Entertainment (earlier known as Sony Pictures Networks India). Aggrieved by the impugned order passed by the Adjudicating Authority, the appellant preferred the present appeal before the NCLAT to challenge the same on the ground of violation of principles of natural justice.
While not raising any issue on the merit of the case, the appellant contended that the copy of the SEBI order was directly produced before the NCLT, and the appellant was not provided with the same beforehand. The appellant further contended that no opportunity was granted to the appellant to place its appropriate response before the NCLT regarding the SEBI order.
The NCLAT observed that it is not disputed by the respondents that the order of the SEBI was produced before the NCLT in course of the proceeding therefore on the sole ground the impugned order is liable to be set aside.
Without going into the merits of the case, the NCLAT set aside the impugned order passed by the NCLT on the ground of “non-compliance of the principle of natural justice” and remitted back the matter to NCLT to examine the same and pass appropriate order after hearing both the parties.
[Zee Entertainment Enterprises Ltd. v. BSE Ltd., 2023 SCC OnLine NCLAT 244, order dated 26-05-2023]
Advocates who appeared in this case :
Mr. Mukul Rohtagi, Sr. Advocate, Mr. Krishnendu Datta, Sr. Advocate, Mr. Nitesh Jain, Mr. Rajat Jariwal, Ms. Vatsala Kumar, Mr. Abhishek Iyer, Mr. Aniruddha Banerji, Mr. Keshav Sehgal, Mr. Rahul Gupta, Counsel for the Appellant;
Mr. Surekha Raman, Counsel for the Respondent No. 1;
Mr. Pranav Sarthi, Counsel for the Respondent No. 2.