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NCLT Admits Insolvency Petition Because No Genuine Pre-Existing Dispute Was Established

Case Law Details

TaxGuru Citation
2026 taxguru.in 7947
Case Name
One 97 Communication Limited Vs Fabzen Technologies Private Limited (NCLT Mumbai)
Date of Judgement/Order
Only available for paid members
Courts
NCLT
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One 97 Communication Limited Vs Fabzen Technologies Private Limited (NCLT Mumbai)

The National Company Law Tribunal (NCLT), Mumbai, admitted an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by One 97 Communications Limited for initiation of the Corporate Insolvency Resolution Process (CIRP) against Fabzen Technologies Private Limited, holding that the Operational Creditor had established the existence of an operational debt, occurrence of default, and absence of any genuine pre-existing dispute.

The Operational Creditor, engaged in digital advertising services and payment solutions, claimed an operational debt of ₹3,41,92,431.50, with the date of default stated as 7 January 2025. It submitted that the Corporate Debtor, an information technology company operating gaming applications such as Ludo Empire, Callbreak Empire and Skill Patti Empire, had approached it in 2024 for digital in-app advertising services. Under the arrangement, the Corporate Debtor issued monthly purchase orders, the Operational Creditor rendered advertising services, and invoices were raised upon completion of the services. While invoices were initially paid, defaults began in respect of invoices relating to services rendered from October 2024 onwards. The Operational Creditor asserted that the invoices remained unpaid despite repeated assurances of payment, meetings, follow-up emails and requests for repayment. It relied on purchase orders, invoices, email correspondence, bank statements, GST records, a Section 8 demand notice dated 19 June 2025, proof of its service, an affidavit stating that no dispute existed, and other supporting documents. According to the Operational Creditor, the Corporate Debtor repeatedly acknowledged the outstanding dues in emails and proposed repayment schedules but failed to make payment or respond to the statutory demand notice.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 21,096

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