The National Company Law Appellate Tribunal on Friday stayed the insolvency proceedings against media major Zee Entertainment Enterprises Ltd (ZEEL).

Admitting a plea by ZEEL Managing Director and chief executive Punit Goenka, a two-member NCLAT bench stayed the order passed by the Mumbai bench of the National Company Law Tribunal (NCLT).

On Wednesday, NCLT admitted a insolvency plea against ZEEL by private sector lender IndusInd Bank and also appointed Sanjeev Kumar Jalan as the resolution professional in the matter.

On Friday, NCLAT issued a notice to IndusInd Bank and the resolution professional directing them to file a reply and listed the matter on March 29 for final disposal.

The matter pertains to a default of Rs 89 crore by Zee Group’s multisystem operator arm Siti Networks claimed by IndusInd Bank, for which ZEEL was a guarantor.

The private sector lender has also filed a separate insolvency petition against Siti Networks at NCLT. The tribunal has appointed Mohit Mehra as the resolution professional in this matter.

The development comes at a time when ZEEL is at advanced stages of merging with Culver Max Entertainment (Sony) in one of the biggest deals in the media and entertainment sector.