Private sector lender Axis Bank has taken a significant step by filing a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) against education services provider Zee Learn. The move aims to instigate Corporate Insolvency Resolution Process (CIRP) for Zee Learn, marking another development in the company’s financial struggles.
Zee Learn confirmed receiving a notice from the Mumbai bench of the National Company Law Tribunal (NCLT) regarding the petition filed by Axis Bank. The regulatory filing on Tuesday indicated that Zee Learn is in the process of compiling information to verify the facts presented in Axis Bank’s petition.
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Notably, the amount claimed by Axis Bank has not been disclosed by Zee Learn, emphasizing their commitment to keeping the exchange informed as further developments unfold. Section 7 of the IBC empowers financial creditors to initiate CIRP in the event of a default.
This legal move follows the NCLT’s prior order in February, instigated by Yes Bank Ltd, which had also sought insolvency proceedings against Zee Learn. The company promptly contested this order at the National Company Law Appellate Tribunal (NCLAT), resulting in the NCLAT setting aside the earlier decision by NCLT’s Mumbai bench. The unfolding situation highlights the complex financial challenges faced by Zee Learn.
