The appellate tribunal stated that NCLT had made an "error" by not granting Zee Entertainment reasonable time to reply.
The National Company Law Appellate Tribunal (NCLAT) on Thursday asked the National Company Law Tribunal (NCLT) to allow Zee Entertainment "reasonable and sufficient opportunity" to reply to Invesco's please for convening an extraordinary general meeting (EGM). The appellate tribunal stated that NCLT had made an "error" by not granting Zee Entertainment reasonable time to reply.
The NCLAT did not mention the amount of time that should be granted to the media conglomerate.
The two-member bench of the NCLAT said this was a complete violation of NCLT Rules and Principles of Natural Justice. It asked the Mumbai bench of the NCLT to proceed after hearing both parties. "... we are of the opinion that reasonable and sufficient opportunity should be given to the appellants for filing a reply," NCLAT's order stated. The appeal was disposed of accordingly.
The order followed Zee Entertainment's petition seeking more time to reply on the requisition of its minority shareholders, Invesco and OFI Global China Fund. The shareholders collectively demanded convening an extraordinary general meeting so as to reconstitute the board and discuss the ouster of managing director Punit Goenka.
On October 2, Zee had moved Bombay High Court seeking its shareholders Invesco Developing Markets Fund and OFI Global China Fund LLC's demand for an extraordinary general meeting be declared invalid.
The two shareholders collectively hold 17.88 per cent stake in the media conglomerate.