Leading media firm Zee Entertainment Enterprises Ltd (ZEEL) on Monday, January 2, said operational creditor Indian Performing Right Society (IPRS) has filed a Rs 211-crore insolvency case against the company. The company in an exchange filing said, "A petition has been filed against the Company under Section 9 of the Insolvency and Bankruptcy Code by the Indian Performing Right Society Limited, an Operational Creditor, before the National Company Law Tribunal, Mumbai Bench for initiation of Corporate Insolvency Resolution Process against the company."

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However, ZEEL said it will be filing its reply rejecting the claim by Indian Performing Right Society Ltd. The claim is for Rs 211.4 crore towards royalty payable for using its literary and musical works.

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"The company will be filing its reply rejecting the claim on, inter alia, the ground that there is a pre-existing dispute between the parties on the claimed amount, the claim is not in consonance with the interpretation of the law on the point of payment of royalties for 'literary and musical works' by the Delhi High Court, and hence, the claimed amount is not due or payable to IPRS," ZEEL said.

IPRS authorises use of copyrighted music by issuing users licences, and collects royalties on behalf of its members — authors, composers and publishers of music. Royalty is distributed among members after deducting IPRS's administrative costs.

Last month, IDBI Bank moved the National Company Law Tribunal (NCLT) against ZEEL seeking to initiate insolvency proceedings against the media firm to recover dues. IDBI Bank has claimed dues of Rs 149.60 crore, which has been disputed by ZEEL, as per a regulatory update from the media firm.

ZEEL had earlier announced a merger with rival Culver Max Entertainment (earlier Sony Pictures Network India) in December 2021. The merger has been approved by the Competition Commission of India (CCI) with certain conditions along with other bodies such as NSE and BSE. Its shareholders and creditors have already approved the merger.

Shares of Zee Entertainment Enterprises Ltd ended at Rs 242.50, up by Rs 2.60, or 1.08 percent on the BSE.