SIAC Cites Lack of Jurisdiction in Rejecting Sony’s Injunction Plea Against Zee
The Singapore International Arbitration Centre (SIAC) has ruled out the interim injunction sought by Sony against Zee Entertainment, citing a lack of jurisdiction for such a directive conveyed by Zee Entertainment in a stock exchange disclosure.
Zee Entertainment communicated, “The Emergency Arbitrator dismissed the request for emergency interim relief by Culver Max and BEPL on February 4, 2024, stating that the arbitrator does not have the power to prevent the company from seeking NCLT’s intervention for the Merger Scheme, as these issues are under the NCLT’s purview.”
Meanwhile, Sony has expressed, “We are disappointed in the Singapore International Arbitration Centre’s (SIAC) decision. This decision is only procedural, ruling as to whether Zee Entertainment would be permitted to pursue its application with the NCLT.”
“We will continue to vigorously arbitrate the matter in Singapore in front of a full SIAC tribunal, pursue SPNI’s right to terminate the merger agreement and seek a termination fee and other remedies. We remain confident in the merits of our position in Singapore and India,” Sony added.
Previously, in 2021, Sony’s India Division, Culvar Max Entertainment and Zee entered into a merger deal valued at $10 Billion. But last January, Sony terminated its merger agreement with Zee Entertainment, which included consolidating its two Indian units, Culver Max Entertainment and BEPL. Sony Group Corporation (SGC) claimed that Zee Entertainment failed to meet the merger requirements and initiated arbitration at SIAC, demanding a $90 million termination fee.
In response, Zee Entertainment approached the NCLT, urging Sony to carry out the merger plan and simultaneously challenging Sony’s $90 million termination fee claim at SIAC. It has also claimed that they have incurred a loss of over $80 million to comply with the merger requirements.
Zee Entertainment contended that Sony’s entities, Culver Max and BEPL, had not fulfilled their merger obligations as approved by the NCLT.
The completion of the Sony-Zee merger would have resulted in a larger conglomerate with ownership of over 70 television channels, two streaming platforms, ZEE5 and Sony LIV and two film production houses, Zee Studios and Sony Pictures Films India, establishing it as the leading entertainment network in India.
Ragul Thangavel
With over nine years of diverse professional experience, Ragul has made significant contributions across various domains, including Media Operations, OTT Technologies, Video Production, Ecommerce, and Social Media.
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