On Friday, the National Company Law Tribunal (NCLT) dismissed IDBI Banks petition to seek insolvency against media giant Zee Entertainment, finding that the petition was barred by Section 10A of the Insolvency and Bankruptcy Code (IBC).
Section 10A provides that no financial and operational creditors may apply to any debtor to initiate a Corporate Insolvency Resolution Proceeding (CIRP) for a period of one year in respect of any default occurring on or after March 25, 2020.
This is a special provision inserted by the government in the IBC to help businesses after the phased resumption of economic activity following the lockdown. Two members of the NCLT said Zee Entertainment Enterprises Ltd (ZEEL), the corporate guarantor of the loan pro…
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