Zee Entertainment says Aditya Birla Finance has challenged arbitral award in Delhi HC

Leading broadcaster Zee Entertainment Enterprises Limited (ZEEL) on Wednesday, August 2, said Aditya Birla Finance Limited (ABFL) has filed a petition before the Delhi High Court challenging the arbitral award that had rejected all claims against the company.On May 13, ZEEL had disclosed that the arbitral tribunal, through its final award dated May 12, had dismissed all of ABFL’s claims. The case related to a letter of comfort (LoC) alleged to have been issued by Zee in connection with a ₹134-crore term loan extended by ABFL to Siti Networks Limited.

Zee had contested that the LoC did not amount to a guarantee and that the amount it received was towards part consideration for channels and signals supplied to Siti under interconnection agreements and TRAI regulations in the normal course of business.

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While rejecting ABFL’s claims, the tribunal had left Zee’s counterclaim open, granting both parties the liberty to pursue their remedies before the National Company Law Appellate Tribunal (NCLAT).The company has now confirmed that ABFL has moved the Delhi High Court to challenge the arbitral award. It added that the matter does not involve any litigation against its key management personnel, promoter, or the ultimate person in control.

Zee further clarified that no settlement has been reached, and therefore, there are no terms of settlement, compensation, penalty, or financial impact to be reported at this stage.

Shares of Zee Entertainment Enterprises Ltd ended at ₹117.65, down by ₹0.25 or 0.21%, on the BSE today (August 20).

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