Indian Performing Right Society (IPRS) Ltd has moved the NCLT insolvency tribunal against Zee Entertainment Enterprise Ltd with a delay claim of Rs 211.41 crore, the media major said in a regulatory filing.
However, Zee Entertainment Enterprise Ltd (ZEEL) added that it would “file its reply rejecting the claim inter alia on the ground that there is a pre-existing dispute between the parties regarding the amount claimed…” IPRS , a public benefit society comprising authors, composers and music publishers, filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC) 2016 as an operating creditor entitled to royalties payable for the use of “literary and musical works”.
”A petition was filed against the company under Section 9 of the IBC by IPRS, an operating creditor, before the NCLT, Mumbai Bench for initiation of insolvency resolution proceedings against the company, claiming debt and default of Rs.211.41 crore. on royalties for the use of ‘literary and musical works’,” ZEEL said.
However, ZEEL added that the claim is not in “conformance with the interpretation of law” on the point of payment of royalties for “literary and musical works” by the Delhi High Court and therefore the amount “claimed” is not due or payable to IPRS”.
IPRS authorizes the use of copyrighted music by users by issuing licenses and collecting royalties on behalf of IPRS members – authors, composers and music publishers. The royalties are distributed among the members after deduction of IPRS administrative costs.
Last month, IDBI Bank filed a case in the National Company Law Tribunal (NCLT) against ZEEL, seeking to initiate insolvency proceedings against the media firm to recover dues.
IDBI Bank claimed Rs 149.60 crore in fees, which was disputed by ZEEL, according to a regulatory update from the media firm.
ZEEL had earlier announced a merger with rival Culver Max Entertainment (formerly Sony Pictures Network India) in December 2021. The merger was cleared by the Competition Commission of India (CCI) with certain conditions along with other bodies such as NSE and BSE.
Its shareholders and creditors have already approved the merger.
(This story has not been edited by Devdiscourse staff and is automatically generated from a syndicated feed.)