Paytm parent filed an insolvency plea against Fabzen.
NCLT admitted the petition over ₹3.41 crore dues.
The tribunal rejected Fabzen’s key defences.
The National Company Law Tribunal (NCLT) has admitted an insolvency petition filed by Paytm’s parent company One97 Communications against gaming firm Fabzen Technologies over unpaid digital advertising dues of more than ₹3.41 crore.
One97 Communications has alleged that Fabzen failed to clear invoices for in-app advertising services from October 2024 onwards, despite a 60-day credit period and multiple follow-ups. Paytm provided promotional services including icon ads, banner ads, deals and scratch cards for Fabzen’s gaming apps.
The petition was filed before the Mumbai bench under Section 9 of the Insolvency and Bankruptcy Code in July 2025.
1 June 2026
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Paytm said it made repeated requests and concessions but received only assurances of payment. It also alleged that Fabzen continued placing fresh advertising orders even while earlier dues remained unpaid.
Tribunal Dismisses Fabzen Claims
Fabzen opposed the petition, arguing that Paytm’s advertising services underperformed in terms of user acquisition, click-through rates (CTR) and average revenue per user (ARPU), despite full budget utilisation.
It also said the campaigns were stopped in January 2025 due to high customer acquisition costs (CAC), poor user quality and failure to meet agreed performance targets.
According to reports, Paytm countered that Fabzen never raised any objections during the campaign period or disputed invoices at any stage. The tribunal noted that email records showed no mention of disputed invoices and that Fabzen continued placing new orders without complaints.
Fabzen also argued that the Promotion and Regulation of Online Gaming Act, 2025 made the contract void under Section 56 of the Indian Contract Act. The tribunal rejected this argument, noting that the law was enacted in August 2025 while default began in January 2025. It held that the debt had already become due and crystallised before the law came into effect.
Paytm’s Second Gaming Sector Case
This is the second insolvency case filed by One97 Communications against a real money gaming platform.
In November 2025, Paytm had moved the NCLT against WinZO Games over unpaid advertising dues of ₹3.6 crore. The tribunal imposed a fine of ₹20,000 after WinZO failed to file a response on time. WinZO later claimed the invoices were not approved and alleged discrepancies in Paytm’s internal records.
