In January this year, IPRS had filed a petition with the Bank of the National Company Law Tribunal (NCLT) in Mumbai to institute corporate insolvency proceedings against Zee Entertainment, claiming a ₹211.41 crore failure to pay music royalties. The artists’ association submitted the application as an operative creditor who collects royalties for the exploitation of “literary and musical works”.
The Indian Performing Right Society (IPRS), founded in 1969, is the representation of music owners, composers, lyricists (or authors) and music publishers and is also the only authorized body issuing licenses for the exploitation of musical works and literary music in India.
On February 24, the National Company Law Appellate Tribunal (NCLAT) stayed the bankruptcy proceedings against the company. After hearing a plea from Punit Goenka, MD and CEO of ZEEL, the court stayed the bankruptcy proceedings initiated by the NCLT and required IndusInd Bank to file its response within two weeks. The NCLT admitted the case after ZEEL failed to meet its debt obligations to IndusInd Bank in respect of the payment of a loan in excess of ₹83 crore made to Siti Networks. The court also allowed IndusInd’s bankruptcy filing against Siti Networks and appointed a preliminary liquidation expert.
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