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Fintech giant Paytm has initiated insolvency proceedings against online gaming platform WinZO, citing non-payment of advertising dues amounting to approximately ₹3.6 crore. The National Company Law Tribunal (NCLT) recently issued notices regarding the petition and scheduled the next hearing for December 15, 2025. This legal move follows delays in payments for marketing services rendered by Paytm to WinZO.
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Dispute Over Invoice Validation and Payment Delays
Paytm’s complaint outlines that the debt arose from invoices issued under mutually agreed purchase orders for promoting WinZO’s gaming products, including poker and rummy, through the Paytm app. Although WinZO initially cleared invoices, recent payments have been withheld due to purported internal validation issues. Paytm’s senior advocate Krishnendu Datta challenged this defense, describing it as a “sham” and emphasized WinZO’s failure to communicate disputes regarding ad placements.
Impact of Online Gaming Ban on Payment Default
The dispute highlights the adverse effects of the recent online real money gaming ban in India. According to Paytm’s submission, the default on payments coincided with the gaming ban’s enforcement, suggesting that WinZO’s financial difficulties stemmed from regulatory changes. WinZO relied on a clause mandating invoice validation via email, a defense Paytm countered by stressing reasonable timelines and prior undisputed payments.
