Axis Bank Petitions for Insolvency Proceedings Against Zee Learn
- ByStartupStory | December 27, 2023
Axis Bank has filed a petition against Zee Learn before the National Company Law Tribunal (NCLT) seeking insolvency proceedings against the education services provider firm. Zee Learn disclosed the development in a regulatory filing, stating that it had received a notice from the Mumbai bench of the NCLT regarding the petition.
In its regulatory filing, Zee Learn stated, “A petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 has been filed by Axis Bank Ltd to initiate Corporate Insolvency Resolution Process (CIRP) of the Company before the National Company Law Tribunal, Mumbai.” The company also mentioned that it is in the process of verifying the facts presented in the petition filed by Axis Bank.
The regulatory filing did not specify the amount claimed by Axis Bank. Zee Learn assured that it would keep the stock exchange informed about any further developments related to the matter.
Section 7 of the Insolvency and Bankruptcy Code allows a financial creditor to file for the initiation of a Corporate Insolvency Resolution Process in the event of a default. Earlier this year, in February, NCLT had ordered insolvency proceedings against Zee Learn when another financial creditor, Yes Bank Ltd (YBL), filed a similar petition.
However, Zee Learn challenged this order immediately, leading to the National Company Law Appellate Tribunal (NCLAT) setting aside the earlier order of the NCLT’s Mumbai bench. The current petition by Axis Bank represents the latest development in the ongoing legal proceedings involving Zee Learn and its financial creditors.
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