Emergency Arbitrator denies Sony’s application against Zee Entertainment in SIAC

The Singapore International Arbitration Centre (SIAC) has denied application for emergency interim relief filed by Sony against Zee Entertainment, the latter said in a stock exchange filing on Sunday, February 4, confirming CNBC-TV18’s newsbreaking earlier today.

The exchange filing quoted SIAC as saying that the Emergency Arbitrator has no jurisdiction or authority to injunct the company from approaching the NCLT to implement the merger scheme as these are matters that fall within the statutory system and are for the NCLT to decide.

Sony Pictures Entertainment later issued a statement saying it was disappointed in the SIAC’s decision. “This decision is only a procedural one, ruling only as to whether Zee Entertainment would be permitted to pursue its application with the NCLT. We will continue to vigorously arbitrate the matter in Singapore in front of a full SIAC tribunal and pursue SPNI’s right to terminate the merger agreement and seek a termination fee and other remedies. We remain confident in the merits of our position in both Singapore and India,” the Sony statement said.

Earlier in the day, CNBC-TV18 reported, citing sources that in a setback for Sony, the Emergency Arbitrator had denied the former’s application against Zee Entertainment in the SIAC, While the arbitration could still go on, the emergency of the matter had been denied, the sources had said.

Last week, sources had said the hearing for an emergency arbitration in the Zee Entertainment-Sony merger took place in Singapore on January 31.

The Singapore International Arbitration Center is the first Asian arbitration institution to offer this process and has received over 130 applications since 2010 for the appointment of an Emergency Arbitrator. In case the application for emergency interim relief is accepted, an Emergency Arbitrator is appointed within a day.

Sony initiated arbitration proceedings for an alleged breach of terms by Zee Entertainment. In response, Zee has initiated legal action to contest Culver Max and BEPL’s claims at the Singapore International Arbitration Centre.

Zee Entertainment also called Sony’s demand for $90 million in termination fees legally untenable and denied the breach of the merger agreement in response to Sony. CNBCTV18