Will go on “arbitrating” in spite of SIAC rejection: Sony

Mumbai: Sony has voiced dissatisfaction with the Singapore arbitral tribunal’s ruling permitting Zee to pursue remedies in Indian courts after the firm’s cancellation of a merger with Punit Goenka’s business.

However, it will keep bringing its case against Zee to the Singapore tribunal for arbitration, arguing that it has the right to end the merger agreement, demand a $90 million termination fee, and seek further redress.
“Zee would be permitted to pursue its application with the NCLT,” according to Sony, which added that it would “continue to vigorously arbitrate the matter in Singapore in front of a full tribunal.” The tribunal’s decision in Singapore is “only a procedural one.” In Singapore, Sony submitted their claim under the emergency arbitration process, which appoints a single bench to consider pleas for immediate relief before the tribunal is established. A full bench will now hear the issue.
Since Singapore did not have the authority to stop Zee from contacting the NCLT-Mumbai, it rejected Sony’s request for temporary relief. Until the arbitration procedures are over, Sony has asked Singapore to stop Zee from seeking remedies from NCLT-Mumbai or other Indian courts.
Currently, NCLT is facing two petitions: one from Zee and the other from Mad Men Film Ventures, a stakeholder of Zee. Both want Sony to fulfill its merger-related duties. The Mumbai tribunal will consider Zee’s case on Tuesday after accepting Mad Men’s request. Sony has been instructed to respond to Mad Men’s appeal by March 12 at the latest.
Sony had requested that the plea be dismissed during the Mad Men case, arguing that it could not be upheld since the petitioner was acting as Zee’s proxy. “We remain confident in the merits of our position in both Singapore and India,” Sony said on Monday. Due to Zee’s failure to satisfy certain requirements, the merger has been called off.