NCLT Raps WinZO Over Rs.3.6 Crore Insolvency Case
The Delhi bench of the National Company Law Tribunal (NCLT) has given WinZO, an online gaming platform, a final chance to submit its response in the ongoing insolvency dispute with One97 Communications Ltd (Paytm). The gaming firm has been fined Rs.20,000 for the delay in filing its reply, according to reports.
In a decision dated February 4, 2026, the two-member panel consisting of Judicial Member Justice Jyotsna Sharma and Technical Member Ravindra Chaturvedi noted that WinZO did not meet the deadline for submitting its response in the insolvency petition filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016.
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The court acknowledged that the respondent's lawyer requested more time to submit the reply. It was observed by the bench in their order that the respondent did not meet the deadline to file their reply as previously granted.
Nevertheless, for the sake of fairness, the NCLT extended the deadline for filing the reply by one more week, with the condition of paying Rs.20,000 to the Prime Minister's National Relief Fund within that time frame. It was ordered by the tribunal that evidence of payment should be presented to the adjudicating authority at least a week before the next scheduled hearing.
The bankruptcy case began because Paytm filed a petition claiming that WinZO owed Rs.3.6 crore for advertising services. Paytm, a financial technology company, stated that the unpaid amount is for four invoices issued to promote WinZO's gambling products on its platform.
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As per the previous statements made to the tribunal, Paytm sent a demand notice on October 1 for the outstanding invoices which had a payment term of 60 days.
The legal representative for Paytm claimed that the advertisements were fully delivered, validation data from the third-party tracking tool AppFlyer was shared in accordance with the contract, and there was no objection from WinZO regarding the placement of the ads. WinZO has disagreed with the allegations and characterized the bankruptcy filing as a form of coercion.
The company stated in a public statement that the bills were not verified and an internal investigation uncovered significant inconsistencies in Paytm's assertions and adherence to regulations.
WinZO asserted that it continues to abide by the rules and is dedicated to fulfilling valid responsibilities. Arve Digital Media took a similar action by initiating insolvency proceedings against WinZO, an online gaming platform, at the National Company Law Tribunal (NCLT) in New Delhi. The petition filed is to recover Rs 1.59 crore in outstanding operational debt, which includes costs related to user acquisition, app installations, and digital growth campaigns.
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Arve Digital Media sent a request for payment on September 17, 2025 to collect the unpaid balances.WinZO's reply on September 30, 2025, alleged fraud and incorrect billing, which the petitioner referred to as a "baseless dispute."