Zee Entertainment Wins Arbitration Case Against Aditya Birla Finance

Zee Entertainment Enterprises Ltd. on Tuesday said an Arbitral Tribunal has dismissed a petition filed by Aditya Birla Finance Ltd. over a loan repayment of ₹1.34 billion linked to Essel group firm Siti Networks Ltd.

The tribunal’s final award, issued on Monday, rejected Aditya Birla Finance’s claim that Zee had guaranteed the term loan extended to Siti Networks. Zee had argued that it merely issued a letter of comfort and was not the principal debtor or guarantor.

The lender had sought a declaration that Zee’s letter of comfort amounted to a guarantee and demanded either repayment of ₹1.75 billion; including interest; or a refund of ₹1.08 billion allegedly paid by Siti Networks to Zee in 2020-21.

Zee countered that the ₹1.08 billion was consideration for channels and signals supplied to Siti Networks under Interconnection Agreements and TRAI regulations.

Zee also filed a counterclaim of ₹150 million, saying this was the amount owed by Siti Networks but instead deposited in an FD that Aditya Birla Finance later appropriated.

The tribunal has not ruled on Zee’s counter claim and has left it open for the parties to approach the National Company Law Appellate Tribunal, Zee said in a statement.