Big jolt to Invesco! NCLAT directs NCLT to give reasonable time to ZEEL to respond

New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Thursday directed the National Company Law Tribunal (NCLT) to provide "reasonable and sufficient opportunity" to Zee Entertainment Enterprises Ltd (ZEEL) to reply to Invesco's plea seeking to convene a meeting of the company's shareholders. NCLAT noted that reasonable time wasn’t granted to ZEEL by NCLT.

A ZEEL spokesperson said that 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.  

In a 15-page order, the appellate tribunal said the NCLT committed an "error" by not granting reasonable time to ZEEL to reply to Invesco's plea.

A two-member NCLAT bench said that it was a complete violation of NCLT Rules and Principles of Natural Justice and directed the Mumbai bench of the NCLT to proceed further after hearing both parties.

"... We are of the opinion that reasonable and sufficient opportunity should be given to the appellants for filing a reply," the appellate tribunal said in the order.

"After hearing both the parties, the learned NCLT should proceed further. The appeal is disposed of accordingly," said the two-member NCLAT bench comprising Justice Jarat K Jain and Alok Srivastava.

However, the NCLAT did not mention how much time should be given to ZEEL to submit its reply. 

The order has come on a petition filed by ZEEL seeking more time to file reply over the requisition of shareholders -- Invesco and OFI Global China Fund -- to convene an Extraordinary General Meeting (EGM).

Invesco Developing Markets Fund (formerly Invesco Oppenheimer Developing Markets Fund) along with OFI Global China Fund LLC hold 17.88 per cent stake in ZEEL. Also Read: TVS Jupiter 125cc launched to rival Honda Activa, Suzuki Access 125: Price, features and more

The shareholders have moved a petition before the NCLT seeking convening of the EGM, removing the company's Chief Executive and Managing Director Punit Goenka as well as two other directors, and reconstituting the board with the appointment of six new directors. Also Read: Paytm LPG booking offer: Get free gold, cashback on buying cooking gas cylinder, here’s how

- With PTI inputs.