IDBI Trusteeship Services Limited (UTSL) has filed an appeal against Essel Group’s Chairperson, Subhash Chandra, at the National Company Law Appellate Tribunal (NCLAT).
The appeal challenged the National Company Law Tribunal (NCLT), Mumbai’s order, which dismissed ITSL’s claim and approved the merger of Zee Entertainment Enterprises Limited (ZEEL) and Sony, a merger previously contested by IDBI Trusteeship. The NCLT had dismissed IDBI trusteeship’s objection to the merger.
As per reports, IDBI Trusteeship argued before NCLT that it serves as the debenture trustee for 425 debentures issued by Essel Infraprojects Limited (EIL) for specific schemes. As per the NCLT order, Subhash Chandra provided a personal guarantee in 2019 to IDBI Trusteeship, ensuring the repayment commitments related to the debentures. The trusteeship company, however, alleged that Chandra did not fulfil his responsibilities under the personal guarantee, establishing him as a creditor. The trusteeship company also claimed over Rs. 500 crore from Chandra.
ZEEL countered this objection, stating that IDBI Trusteeship is not a Zee creditor.