National Company Law Appellate Tribunal (NCLAT) directs National Company Law Tribunal (NCLT) to give more time to Zee Entertainment and its directors to file their reply on Invesco Developing Markets Fund’s plea for an Extraordinary General Meeting (EGM) Have given.
The NCLAT on Thursday said that the NCLT has erred in not giving Zee Entertainment Enterprises Limited (ZEEL) proper and sufficient time to file its reply and termed it as a violation of the principles of natural justice.
The NCLAT was hearing GEEL’s plea against the NCLT order, asking it to respond by October 7 to a plea by shareholders Invesco Developing Markets Fund and OFI Global China.
“The 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,” the order said.
A spokesperson of ZEEL had said on Wednesday that the company has moved the NCLAT as per due process available under the law.
“The Company has filed a suit in the Bombay High Court to declare that the demand notice sent by Invesco Developing Markets Fund and OFI Global China Fund LLC is invalid. The Company has full faith in the Indian judicial system and will take all Necessary steps which are in the best interest of all its shareholders,” the spokesperson had said.
The Mumbai Bench of the NCLT had on October 30 directed the ZEEL board to convene the EGM under Section 100 of the Companies Act, 2013, as sought by the shareholder Invesco.
ZEEL had on October 1 called Invesco its inability to convene the EGM, saying the demand notice was “invalid and illegal”.
The company had said that its board, consisting of experienced professionals, deliberated and discussed various legal and statutory implications of the demand notice.