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The National Company Law Tribunal (NCLT) has admitted an insolvency plea filed by fintech giant Paytm against online gaming company Fabzen Technologies. The plea, concerning unpaid digital advertising dues exceeding ₹3.41 crore, marks a significant development in the ongoing disputes between digital platforms and gaming firms in India.
Paytm, through its parent One97 Communication, alleged that Fabzen failed to honor invoices for advertising services provided since October 2024, despite a 60-day credit period. The advertising services included ‘icon ads’, ‘banner ads’, ‘deals’, and ‘scratch cards’ used to promote Fabzen’s gaming applications like Ludo Empire, Callbreak Empire, and Skill Patti Empire.
According to Paytm, multiple discussions and concessions were made, with Fabzen providing assurances of payment that were not met. The fintech company initiated proceedings at the Mumbai bench of the NCLT under the Insolvency and Bankruptcy Code (IBC) in July 2025, noting that Fabzen continued to utilize its advertising services even while defaulting on previous payments.
Fabzen Technologies contested the plea, arguing that Paytm’s advertising services were subpar and questioned their performance in terms of user acquisition, click-through rates (CTR), and average revenue per user (ARPU), despite full budget utilization. The gaming company stated it requested Paytm to halt ad campaigns in January 2025 due to poor user quality and high customer acquisition costs.
The NCLT, in its ruling, found no record of disputed invoices in the email exchanges between the parties. It also noted that Fabzen continued to place orders for subsequent campaigns without raising complaints about service deficiencies, undermining its claims of subpar service.
Fabzen further argued that the recent Promotion and Regulation of Online Gaming Act, 2025, had negatively impacted its business and rendered the commercial basis of the deal void. However, the Tribunal pointed out that the debt had crystallized before the Act’s enactment in August 2025, rendering this argument invalid for the pre-existing dues.
This is Paytm’s second insolvency plea against a real money gaming (RMG) platform since the new gaming regulations were introduced. In November 2024, Paytm filed a similar plea against WinZO games for ₹3.6 crore in unpaid advertising dues. The NCLT had previously fined WinZO for failing to submit a response to the petition.
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