Mumbai The National Company Law Appellate Tribunal (NCLAT) on Thursday said that Zee Entertainment Enterprises Ltd should be given proper and sufficient time to file a reply on Invesco’s plea for convening a special shareholders’ meeting.
The development comes as a relief to Zee, whose lawyer had expressed displeasure with the National Company Law Tribunal’s (NCLT) October 5 order asking the broadcaster to respond to Invesco’s plea within two days.
The NCLAT, in its 15-page order, said that the NCLT has erred in not giving Zee a reasonable time to respond to Invesco’s plea.
Justice Jarat Kumar Jain and Justice Vijay Pratap said, “It is clear that the learned NCLT has erred in not giving proper and sufficient time to file the reply, which is in complete violation of Rule 37 of the NCLT Rules and Principles of Natural Justice.” Is.” Singh said in his order.[We] They are of the opinion that the appellants should be given a fair and adequate opportunity to file their reply.”
The appeals court did not specify how much time should be given to Zee to submit its reply.
On Wednesday, Zee approached NCLAT, seeking more time to file a response to the pleas of Invesco Developing Markets Fund and OFI Global China Fund LLC for convening an Extraordinary General Meeting (EGM).
The corporate battle at Zee began when Invesco approached the NCLT on 28 September and directed the company’s board to hold an EGM for the removal of Puneet Goenka from the post of Managing Director.
At the time, Zee told the NCLT that its board, which includes six independent directors and Goenka, would decide on the demand.
Goenka, however, recused himself from the board meeting, wherein the directors dismissed Invesco’s demand to hold the EGM as illegal and illegal.
On the same day, Zee filed a 420-page petition before the Bombay High Court, asking it to decide on the legality of Invesco’s demand.
Invesco Developing Markets Fund (formerly Invesco Oppenheimer Developing Markets Fund) and OFI Global China Fund jointly hold 17.88% stake in Zee, while the promoter group holds 3.99%.
Invesco, in a letter to the Zee board on September 11, had first sought the EGM and restructuring of the board.
The NCLT will hear Zee’s plea on Friday and give a fresh date for the media company to file its reply.
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