Arbitral Tribunal refutes Zee Entertainment’s claim against RailTel

27 Nov 2024 , 12:16 PM

Zee Entertainment Enterprises Ltd (ZEEL) announced on Tuesday (November 26) that its subsidiary, Margo Networks Private Ltd, suffered a blow when the Arbitral Tribunal rejected its claims against Railtel Corporation of India Ltd.

“This is to tell you that the Arbitral Tribunal, through its Arbitral Award, has rejected the said claims submitted by the firm and Margo against RailTel,” ZEEL stated in a regulatory filing. 

The accusations related to Railtel claimed improper termination of a Content on Demand Agreement and the confiscation of cash. The Tribunal also dismissed Railtel’s counterclaims filed in the same arbitration procedures.

ZEEL has announced that it is reviewing the Arbitral Award and will consider filing an application or appeal with the proper court to contest the verdict. The arbitration was triggered by disagreements about the agreement, which ZEEL and Margo claimed was unlawfully terminated.

Furthermore, the Arbitral Tribunal rejected Railtel’s counterclaims. The corporation is considering filing an application/appeal with the competent Court to set aside the Arbitral Award, it stated.

Recently, ZEE also announced that its CEO, Punit Goenka, who resigned as managing director (MD) last week, has withdrawn his assent for re-appointment as MD, which was initially suggested for approval at the annual general meeting on November 28.

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