In a fresh legal tussle between two digital economy players, the New Delhi bench of the National Company Law Tribunal (NCLT) has issued a notice to online gaming platform WinZO following an insolvency plea filed by fintech giant Paytm over alleged non-payment of dues amounting to ₹3.6 crore.
A two-member bench comprising Justice Jyotsna Sharma (Judicial Member) and Anu Jagmohan Singh (Technical Member) has directed WinZO to file its response within two weeks, while listing the matter for next hearing on December 15.
Paytm’s Insolvency Claim
Representing Paytm, counsel Krishnendu Datta told the tribunal that WinZO had defaulted on payments for four invoices raised for promoting its real-money gaming (RMG) offerings on the Paytm app. Datta argued that the invoices, each carrying a 60-day payment term, remained unpaid despite the fintech company issuing a demand notice on October 1.
According to Paytm, the advertisements were successfully executed and validated through AppFlyer, a third-party campaign tracking tool. The counsel further noted that WinZO had never disputed the ad placements or raised any concerns over campaign delivery, adding, “There is no communication or email where they say advertisements were not placed.”
Calling WinZO’s stance a “sham defence,” Datta alleged that the gaming company was resorting to procedural arguments to delay payment. He also pointed to the Centre’s recent ban on online real-money gaming, suggesting that financial strain from the policy shift might have contributed to the default.
WinZO’s Counterargument
WinZO’s counsel Abhishek Malhotra, however, denied the liability and cited Clause 14 of the purchase order, which requires invoices to be validated through email before becoming payable. He argued that internal correspondence showed the invoices were still “under validation” and had been forwarded to the company’s central team for verification, implying that the payment timeline had not yet commenced.
NCLT’s Direction and Broader Context
After hearing arguments from both sides, the NCLT bench allowed WinZO to submit its counterstatement and formally issued a notice to the startup.
The dispute comes at a challenging time for WinZO, which was valued at $375 million in 2021 and has been reorienting its business model amid the regulatory clampdown on real-money gaming. The company recently expanded into the US market and has been experimenting with new features, including ZO TV, a short video platform aimed at diversifying its content ecosystem.
Meanwhile, the broader industry remains in flux. A number of gaming companies have challenged the Centre’s ban on online RMG, and earlier this month, the Supreme Court asked the government to file a comprehensive response to the petitions contesting the new rules.
The outcome of Paytm’s insolvency plea could have wider implications for the gaming and advertising ecosystem, as it touches upon payment validation norms and operational accountability between digital platforms and advertisers.
