Axis Bank moves NCLT to seek insolvency proceedings against Zee Learn

New Delhi: Private sector lender Axis Bank has filed a petition against Zee Learn before the National Company Law Tribunal (NCLT) seeking insolvency proceedings against the the education services provider firm.

The company has received a notice from the Mumbai bench of the NCLT in this regard, Zee Learn said in a regulatory filing on Tuesday.

"A petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 has been filed by Axis Bank Ltd to initiate Corporate Insolvency Resolution Process (CIRP) of the Company before the National Company Law Tribunal, Mumbai," it said.

The company is compiling information to verify the facts claimed in said petition filed by Axis Bank, Zee Learn added.

Zee Learn has not mentioned the amount claimed by Axis Bank. It said: "The Company shall keep the exchange updated of the further developments in the matter." Section 7 of IBC allows a financial creditor to move a plea for initiation of a Corporate Insolvency Resolution Process in case of a default.

NCLT had earlier ordered insolvency proceedings against Zee Learn in February this year, when another financial creditor Yes Bank Ltd (YBL) filed a similar petition.

Zee Learn immediately challenged that order in the National Company Law Appellate Tribunal (NCLAT) and the appellate tribunal had set aside the earlier order of the NCLT's Mumbai bench.