National Company Law Appellate Tribunal (NCLAT) has directed National Company Law Tribunal to grant more time to Zee Entertainment and its directors to file their reply to a plea by Invesco Developing Markets Fund for an extraordinary general meeting.
The NCLAT said on Thursday said National Company Law Tribunal (NCLT) has committed an error by not granting Zee Entertainment Enterprises LTD (ZEEL) reasonable and sufficient time for filing a reply and termed it a violation of principles of natural justice.
NCLAT was hearing ZEEL's petition against the NCLT order that asked it to respond by October 7 on the plea of shareholders Invesco Developing Markets Fund and OFI Global China.
"NCLT has committed an error in not granting reasonable and sufficient time for filing a reply, which is a complete violation of Rule 37 of NCLT Rules and Principles of Natural Justice," the order said.
A ZEEL spokesperson had said on Wednesday that the company has moved National Company Law Appellate Tribunal (NCLAT) in accordance with the due process available under the law.
"The Company has also filed a suit in Bombay High Court to declare that the requisition notice sent by Invesco Developing Markets Fund and OFI Global China Fund LLC is invalid. The Company continues to have full faith in the Indian judicial system and will take all the necessary steps that are in the best interests of all its shareholders," the spokesperson had said.
The Mumbai Bench of NCLT had on October 30 directed ZEEL board to call EGM, as sought by shareholder Invesco, under Section 100 of the Companies Act, 2013.
ZEEL had on October 1 conveyed its inability to Invesco to convene EGM, stating that the requisition notice is "invalid and illegal".The company had said that its Board, comprising experienced professionals, deliberated and discussed various legal and statutory implications of the requisition notice.
Invesco, which along with OFI Global China Fund LLC, holds a 17.88 per cent stake in ZEEL, had moved the NCLT on September 29 -- around two weeks after it demanded an EGM to push for the ouster of the company's three directors including MD and CEO Punit Goenka.
( With inputs from ANI )
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor