SIAC denies Sony’s plea for interim relief against Zee Entertainment

The Singapore International Arbitration Centre (SIAC) has rejected emergency interim relief to Sony Group’s Culver Max Entertainment and Bangla Entertainment against Zee Entertainment Enterprises. The SIAC’s emergency arbitrator asserted that the National Company Law Tribunal (NCLT) is the appropriate forum for the dispute.

Zee, in a stock exchange filing, confirmed the denial of interim relief, stating that the Emergency Arbitrator lacks jurisdiction to prevent Zee from approaching the NCLT for implementing the Merger Scheme. Legal experts have highlighted that the arbitration proceedings regarding Zee’s 90 million USD obligation in termination fees to Sony will proceed despite this decision.

“This decision is only a procedural one, ruling only as to whether Zee Entertainment would be permitted to pursue its application with the NCLT. We will continue to vigorously arbitrate the matter in Singapore in front of a full SIAC tribunal and pursue SPNI’s right to terminate the merger agreement and seek a termination fee and other remedies. We remain confident in the merits of our position in both Singapore and India,” Sony said in a statement.

Culver Max and Bangla Entertainment terminated their merger agreement with Zee on January 22, citing unfulfilled conditions, and are seeking 90 million USD in termination fees. Sony Group had approached SIAC, requesting to restrain Zee from seeking legal remedies until arbitration concluded.

Zee, along with shareholder Mad Man Film Ventures, filed pleas before the NCLT Mumbai bench, seeking directions for Sony Group companies to implement the merger scheme. While Zee’s application is expected to be heard next week, the division bench adjourned Mad Man Film’s matter to March 12, granting Sony Group companies three weeks to file their reply.

Zee has urged the NCLT to direct Culver Max and Bangla Entertainment to execute the composite scheme of arrangement, maintaining the status quo. Additionally, Zee has requested the tribunal to prevent Sony Group-owned firms from taking steps that could jeopardize the scheme and appoint a committee to oversee the implementation, consisting of two directors from each company.