The National Company Law Tribunal (NCLT) has officially admitted the plea filed by Axis Finance to initiate a corporate insolvency resolution process against Primat Infrapower and Multiventures Pvt. Ltd, both of which are part of the Zee Group. This decision comes in response to a significant financial default involving dues worth ₹100 crore.

Axis Finance, identified as one of the financial creditors to Primat Infrapower and Multiventures, moved the NCLT after the company defaulted on its loan obligations. The petition was filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, highlighting the serious nature of the default and the urgency for intervention. In June 2018, Axis Finance had sanctioned a term loan of ₹100 crore to Primat, with a tenure of three years. Unfortunately, the company’s failure to meet its financial commitments triggered the insolvency proceedings.

In the NCLT's ruling, the bench led by Justice Kuldeep Kumar Kareer stated, “We hold that the debt and default have been satisfactorily established from the records.” This statement affirms the NCLT's position that Primat has committed a default exceeding the minimum threshold of ₹1 crore as prescribed under the IBC. In light of these findings, the tribunal has appointed Devarajan Raman as the interim resolution professional, responsible for overseeing the company’s day-to-day operations during the insolvency process.

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The legal representation for Axis Finance was handled by counsels Nausher Kohli and Niyati Merchant, while advocate Harsh Behanya and Prachi Sanghvi represented Primat. This legal framework indicates the serious nature of the proceedings and the importance of ensuring due process throughout the insolvency resolution.

In a related context, it's notable that in December 2023, the Bombay High Court had permitted Axis Finance to recover dues exceeding ₹60 crore from another Zee group company, Cyquator Media. This situation arose due to Cyquator’s default on interest payments since September 2019, indicating a broader trend of financial distress within the Zee Group's companies.

Furthermore, in April, the Bombay High Court dismissed a review petition filed by the promoters of Zee Entertainment Enterprises Ltd, which challenged the earlier ruling regarding Axis Finance's recovery. This ongoing legal scrutiny highlights the challenging financial landscape facing the Zee Group.

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As the situation unfolds, the implications of these insolvency proceedings may have far-reaching effects not only on the companies involved but also on the broader financial ecosystem surrounding the Zee Group. The appointment of an interim resolution professional is a critical step towards potentially restructuring or liquidating assets to address outstanding debts.

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