Mumbai : The National Company Law Appellate Tribunal (NCLAT) on Friday stayed the order directing the initiation of insolvency proceedings against Zee Entertainment Enterprises Ltd ( Zeel)  which was a huge relief for the company. 

The decision came after the NCLAT heard Zeel CEO Punit Goenka challenge the company's insolvency proceedings.

Also read : ZEEL CEO Punit Goenka moves NCLAT over insolvency case 

Zeel CEO  Punit Goenka said "We respect the decision taken by the Hon’ble National Company Law Appellate Tribunal (NCLAT) and remain committed towards protecting the interests of all stakeholders. Our focus continues to be on the timely completion of the proposed merger.” 

The National Company Law Tribunal's Mumbai bench granted Zee Entertainment Enterprises Ltd. permission to initiate insolvency proceedings on Wednesday.

The order came as a result of a petition filed by IndusInd Bank Ltd. after the company failed to meet its obligations under a Debt Service Reserve Account Agreement between the bank and Siti Networks Ltd., to which Zee was also a party.