The National Company Law Tribunal (NCLT) has admitted fintech giant Paytm’s insolvency plea against online gaming company Fabzen Technologies over unpaid digital advertising dues exceeding ₹3.41 crore. The plea, filed in July 2025, concerns Fabzen’s failure to clear invoices for in-app advertising services provided by Paytm since October 2024, despite a 60-day credit period and multiple follow-ups, according to inc42.com.
Paytm’s parent company, One97 Communications, alleged that Fabzen continued to use its advertising services, including icon ads, banner ads, deals, and scratch cards, without settling previous dues. Paytm stated it made repeated requests and concessions, receiving false assurances from Fabzen regarding payment timelines. After late fees and interest accrued, Paytm approached the Mumbai bench of the NCLT under the Insolvency and Bankruptcy Code. Fabzen responded by questioning the quality and performance of Paytm’s ad campaigns, citing low user acquisition and click-through rates, inc42.com reported.
This case highlights growing tensions in the digital advertising space between fintech and gaming sectors, where unpaid dues can lead to insolvency proceedings. Fabzen operates popular games such as Ludo Empire, Callbreak Empire, and Skill Patti Empire. The dispute underscores challenges in ad service agreements and payment enforcement, reflecting broader issues in India’s online gaming market, which has seen increased monetization efforts through in-app advertising, inc42.com noted.
The NCLT’s admission of the insolvency plea marks a critical step in the legal process, potentially impacting Fabzen’s operations and financial standing. The tribunal’s decision to admit the case came after Paytm’s petition detailed the unpaid dues and Fabzen’s continued use of services despite defaults. The next legal hearings will determine the resolution framework under the Insolvency and Bankruptcy Code, according to inc42.com.