Bombay High Court rejects Axis Finance's petition on Zee Entertainment Enterprises

In a major relief to Zee Entertainment Enterprises Limited (ZEEL) as well as the Sony Group, the Honourable Bombay High Court was pleased to dismiss the application preferred by Axis Finance Limited to implead them as well as their Mauritius entities as parties to a Commercial Suit filed by Axis Finance Limited against Dr. Subhash Chandra Goenka and other borrower entities. The said dismissal comes as a major set-back to Axis Finance Limited who has failed to obtain any reliefs whatsoever from the Honourable Bombay High Court.
 
Axis Finance Limited had initially filed a Commercial Summary Suit No. 14 of 2021, against Dr. Subhash Chandra Goenka and Punit Goenka amongst others. In the said Commercial Summary Suit, Axis Finance Limited had preferred an application for interim reliefs in the nature of attachment before judgment against Dr. Subhash Chandra Goenka and Punit Goenka. After hearing the parties, the Honourable Bombay High Court was pleased to reject the said application preferred by Axis Finance Limited by its order dated 16th March 2021, as the same was devoid of any merits. Pertinently, in its order dated 16th March 2021, the Honourable Bombay High Court had observed that Dr. Subhash Chandra Goenka and Punit Goenka are not parties to the loan agreement or the securities created towards the loan agreement. Thus, the Honourable Bombay High Court had refused to grant any reliefs in favour of Axis Finance Limited.
 
As Axis Finance Limited failed to obtain any relief in the Commercial Summary Suit, Axis Finance Limited filed Commercial Suit No.252 of 2022, before the Honourable Bombay High Court. In the said Commercial Suit, Axis Finance Limited had also preferred an application seeking urgent reliefs. However, by its Order dated 9th November 2022, the Honourable Bombay High Court had refused to grant any reliefs in favour of Axis Finance Limited. Pertinently, by its Order dated 9th November 2022, the Honourable Bombay High Court had observed that Axis Finance Limited had not made out any prima facie case against Punit Goenka and Amit Goenka. Furthermore, by the said application, Axis Finance Limited was seeking reliefs against a Mauritius entity being Essel Mauritius, who was not even a party to the said Commercial Suit. Thus, the Honourable Bombay High Court had refused to grant any reliefs in favour of Axis Finance Limited. Axis Finance Limited had challenged the said order in an appeal being Commercial Appeal (L) No. 36499 of 2022, before the Division Bench of the Honourable Bombay High Court. However, Axis Finance Limited failed to obtain any reliefs in the Commercial Appeal and the Commercial Appeal was disposed-off by an order dated 12th June 2023, passed by the Honourable Bombay High Court.
 
Pertinently, Axis Finance Limited had also intervened in the Zee-Sony merger application which was pending before the Honourable NCLT, Mumbai and had attempted to derail the same. However, Axis Finance Limited failed in its objective and did not get any relief from the Honourable NCLT.
 
Pursuant to the dismissal of its Commercial Appeal, Axis Finance Limited had pressed the aforesaid application seeking impleadment of ZEEL and the Sony Group as well as their Mauritius Entities as parties to the Commercial Suit. However, the Honourable Bombay High Court dismissed the said application. In the said application, Axis Finance Limited was represented by MDP & Partners. Dr. Subhash Chandra Goenka, Punit Goenka and Amit Goenka were represented by ANB Legal. ZEEL was represented by Trilegal, the Sony Group was represented by Shardul Amarchand Mangaldas & Co. and Essel Mauritius was represented by HN Legal.