NCLAT agrees to hear IDBI Bank's appeal against ZEEL on August 31

The National Company Law Appellate Tribunal (NCLAT) on Thursday agreed to hear the appeal by the IDBI Bank against the National Company Law Tribunal (NCLT) order at length.

The case relates to the lender's insolvency plea against Zee Entertainment Enterprises Limited (ZEEL).

No notice has been issued to ZEEL.

The IDBI has now sought a week's time to file additional documents, according to a report in the Moneycontrol.

The next date of the hearing is on August 31.

In May 2023, the NCLT's Mumbai bench refused to entertain the IDBI's plea, stating that it was barred under Section 10A of the Insolvency and Bankruptcy Code (IBC).

Section 10A mandates that no application for initiation of corporate insolvency resolution process (CIRP) can be filed against any debtor by a financial and operational creditor for any default arising on or after March 25, 2020, for a period of one year.

According to the Moneycontrol report, this was a special provision inserted by the government in the IBC to provide some relief to companies when economic activities resumed after the Covid-19 lockdowns.

A two-member NCLT Bench said that the ZEEL, the corporate guarantor for the loan availed by the Siti Networks — the principal borrower of the IDBI Bank — committed a default.

According to the report, the default was committed during the time specified under Section 10A.