IDBI Bank Takes Zee To Insolvency Court, Threatened With Defamation In Return

IDBI Bank has filed an insolvency case against Zee Entertainment Enterprises Ltd by filing an application under Section 7 of the Insolvency and Bankruptcy Code at the Mumbai bench of the National Company Law Tribunal, the media firm said in an exchange filing on Wednesday.

Zee has announced that it will vigorously contest the proceedings and may pursue legal action against IDBI Bank, including claims for malicious prosecution, defamation, and damages.

The bank has alleged a default of Rs 225.23 crore along with interest and other charges.

As per the disclosures made by Zee, the claim is based on a Debt Service Reserve Agreement linked to credit facilities extended by IDBI Bank to Siti Networks Ltd, with Zee being the guarantor. But this is not the first time IDBI has attempted legal action against the media company over this matter.

In 2022, IDBI filed an application before the insolvency law tribunal, which was dismissed in May 2023. An appeal against that dismissal was made before the appellate authority in Delhi, but that was rejected in April 2025.

The bank further sought relief under the Recovery of Debts and Bankruptcy Act, 1993.

However, both the Mumbai and Delhi benches of the Debts Recovery Tribunal dismissed its claims. However, the Delhi tribunal’s order dated Jan 13, 2025, is currently being appealed.

Zee has strongly denied the allegations, calling the application malicious, fraudulent, and an abuse of the legal process.

The company has informed the shareholders at large that the bank’s repeated attempts to revive the same claim are driven by bad faith.

The bank’s current application seeks Rs 225.23 crore along with compounded interest and other penalties effective from July 1, 2025. However, Zee's stance is clear.

It says that given the previous rulings against IDBI, it does not anticipate any major financial impact from the proceedings.