Zee Entertainment Enterprises Ltd.’s problems may have now taken a u-turn. Just days after the National Company Law Appellate Tribunal (NCLAT) stayed its insolvency proceedings, the Indian Performing Right Society (IPRS) has also done something similar. Official updates suggest that IPRS and Zee have reached an agreement and the insolvency plea will be withdrawn.
The regulatory filing from Zee Entertainment on agreement with IPRS reads, “In furtherance of the same, by this communication, we wish to update you that the Company and IPRS have entered into a settlement agreement by which all disputes and claims have been settled between the Company and IPRS and accordingly IPRS has agreed to withdraw the aforesaid insolvency petition filed by them.”
For those not familiar with the case – the IPRS is the representative body of music owners and composers that is solely responsible for collecting royalty on behalf of all artists. In January, the IPRS filed an insolvency plea against Zee before the National Company Law Tribunal (NCLT) for an alleged non-payment of almost Rs 200 crore.
While the allegations were based on IPRS’ findings, Zee denied them by saying the claims by IPRS were reportedly not in line with the interpretation of the law. This law had to do with the point of payment of royalties for literary and musical works.
Since the case moved forward and Zee Entertainment also got into a legal battle with IndusInd Bank, as of today, updates suggest that IPRS and Zee – both have entered into an agreement to call off the insolvency plea.
It must be noted that the details of agreement reached between IPRS and Zee Entertainment have not been mentioned in the regulatory filing. However, in the same, under Annexure-A, Zee has clarified that “settlement terms are as per the settlement agreement entered into by the Company and IPRS. There is no penalty paid and no material impact on the financial position of the Company.”
