Axis Bank Petitions NCLT For Zee Learn's insolvency proceedings

Axis Bank has lodged a petition against Zee Learn with the National Company Law Tribunal (NCLT), aiming to initiate insolvency proceedings against the education services firm. Zee Learn disclosed the receipt of a notice from the NCLT's Mumbai bench concerning this matter in a regulatory filing.

The regulatory filing by Zee Learn indicated that Axis Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to trigger the Corporate Insolvency Resolution Process (CIRP) for the company. Zee Learn is presently gathering information to validate the claims made in Axis Bank's petition.

Although the exact amount claimed by Axis Bank has not been specified by Zee Learn, the company pledged to provide updates on further developments in this case. Section 7 of the IBC empowers a financial creditor to approach for the commencement of a Corporate Insolvency Resolution Process following a default.

Earlier this year in February, the NCLT had directed insolvency proceedings against Zee Learn in response to a similar petition by another financial creditor, Yes Bank Ltd (YBL). Zee Learn contested this order promptly in the National Company Law Appellate Tribunal (NCLAT), resulting in the NCLAT overturning the initial decision by the NCLT's Mumbai bench.