Zee Entertainment Shares Surge After Tribunal Dismisses Aditya Birla Finance Claim

Zee Entertainment Enterprises Ltd (ZEEL) achieved a legal breakthrough after the Arbitral Tribunal dismissed all claims filed by Aditya Birla Finance Ltd (ABFL) concerning a ₹134 crore loan dispute.

Background of the Dispute

The arbitration proceedings were initiated by ABFL against Zee in relation to a ₹134 crore term loan extended to Siti Networks Ltd. ABFL contended that Zee had issued a Letter of Comfort (LOC) that functioned as a corporate guarantee for the loan. The finance company sought legal recognition of the LOC as a binding financial guarantee and demanded that Zee be held responsible for the repayment, including interest, amounting to a total claim of ₹174.57 crore. ABFL also claimed a refund of ₹108 crore previously paid to Zee by Siti in FY 2020–21.

Zee firmly denied these allegations, maintaining that the LOC did not constitute a guarantee. The company asserted that the ₹108 crore in question was received as a legitimate payment for broadcasting services provided to Siti Networks, governed by valid Interconnection Agreements under the TRAI Act.

Zee’s Counterclaim and Tribunal’s Ruling

In response to ABFL's claims, Zee filed a counterclaim worth ₹15 crore. This amount, according to Zee, was deposited by Siti Networks in fixed deposits on Zee's behalf but was later appropriated by ABFL. While the Arbitral Tribunal rejected all of ABFL’s claims in its final award dated 12 May 2024, it refrained from delivering a conclusive judgment on Zee’s counterclaim. The Tribunal granted both parties the liberty to seek further recourse before the National Company Law Appellate Tribunal (NCLAT).

Read More: Zee Entertainment Shares Rise Over 2% After NCLAT Rejects IDBI’s Insolvency Plea

ZEEL Share Performance 

As of May 13, 2025, at 2:40 PM, the ZEEL share price is trading at ₹121.68 per share, a surge of 3.88% from the previous closing price. Over the past month, the stock has surged by 12.72%.

Conclusion

The Tribunal’s decision represents a notable legal win for Zee Entertainment, relieving it of potential liabilities tied to the contested loan. While the counterclaim remains unresolved, the outcome has reinforced Zee’s stance and lifted investor sentiment, as reflected in the market’s response.

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