NCLT Admits Insolvency Plea Against Dream11
The debt originated from a Lease and Licence Agreement from 2019, where Sporta Technologies failed to pay the monthly licence fee.
The National Company Law Tribunal in Mumbai has admitted an insolvency plea against Sporta Technologies Pvt., the owner of the fantasy sports platform Dream11, for a debt exceeding Rs 7 crore.
The debt originated from a lease and licence agreement from 2019, where Sporta Technologies failed to pay the monthly licence fee.
The agreement granted Sporta Technologies a licence for five years with a monthly fee, but it has defaulted on payments since March 2020. The petitioner issued a demand notice in 2021, but Sporta Technologies did not comply, leading to the company's petition.
In response, Sporta Technologies claimed it lost the opportunity to negotiate fees due to the impact of the Covid-19 pandemic and confusion about ownership with a third party, Mangalam Vanijya Pvt. The company also mentioned a provisional attachment order issued by the Directorate of Enforcement.
The tribunal found that Sporta Technologies had a financial obligation towards the Operational Creditor (Reward Solutions) and acknowledged its liability. Despite disputes about the payee, the tribunal concluded that the existence of debt and default was clear.
The petition has been admitted, and a corporate insolvency resolution process has been initiated against Sporta Technologies. An Interim Resolution Professional has been appointed, and the petitioner has been instructed to deposit Rs 2 lakh for initial CIRP costs.
