Operational creditor files Rs 211-cr insolvency case against Zee Entertainment

An operational creditor has filed Rs 211-crore insolvency case against Zee Entertainment Enterprises, the company said on Monday.

"A petition has been filed under Section 9 of the Insolvency and Bankruptcy Code by the Indian Performing Right Society, an Operational Creditor, before NCLT for initiation of Corporate Insolvency Resolution Process against the Company," the company said in a stock exchange filing.

Zee said it will be filing its reply rejecting the claim. The quantum of the claims is Rs 211.4 crore.

"The Company will be filing its reply rejecting the claim on, inter alia, the ground that there is a pre-existing dispute between the parties on the claimed amount, the claim is not in consonance with the interpretation of the law on the point of payment of royalties for “literary and musical works” by the Delhi High Court, and hence, the claimed amount is not due or payable to IPRS," said Zee Entertainment in the stock exchange filing. 

On Monday, the company's shares closed 1.1% higher at Rs 242.80.