The National Company Law Tribunal (NCLT) has directed to initiate insolvency proceedings against Zee Learn, following a petition filed by private sector lender Yes Bank Ltd.
Yes Bank Ltd (YBL) had claimed a default of Rs 468.99 crore by the Essel Group company.
Out of the default amount of Rs 468.99 crore, the principal amount was Rs 410.67 crore and Rs 58.32 was interest. The date of default was August 2, 2021.
A two-member bench of the Mumbai NCLT said the application made by the financial creditor Yes Bank is complete in all respects as required by law.
"It clearly shows that the Corporate Debtor (Zee Learn) is in default of a debt due and payable, and the default is in excess of the minimum amount stipulated under section 4(1) of the IBC," said NCLT.
Therefore, the debt and default stand established and there is no reason to deny the admission of the Petition.
"In view of this, this Adjudicating Authority (NCLT) admits this Petition and orders initiation of CIRP against the Corporate Debtor," it said.
CIRP stands for Corporate Insolvency Resolution Process.
YBL moved NCLT last year and Zee Learn received notice over the petition on April 25.
Zee Learn mainly operates in the education segment. It has a chain of K-12 schools, Mount Litera Zee School, and a pre-school network -- Kidzee.