WinZO calls Paytm’s insolvency plea a ‘pressure tactic’ after eight-year partnership

New Delhi: WinZO has pushed back against Paytm’s insolvency petition at the National Company Law Tribunal (NCLT), describing it as a “pressure tactic” and alleging discrepancies in the fintech firm’s advertising invoices.

“It is unfortunate that, after an eight-year partnership, Paytm has escalated a routine commercial settlement into an insolvency proceeding as a pressure tactic. Such matters should be resolved through dialogue and due process, not by weaponising insolvency frameworks.

In any event, it was categorically informed to Paytm that the invoices in question were never approved by WinZO and the audit has found material discrepancies in Paytm’s claims and compliances, which are under review by WinZO compliance team. WinZO remains fully compliant and committed to honouring all legitimate obligations,” a WinZO spokesperson said. 

The response comes after Paytm filed an insolvency petition against the gaming platform, alleging non-payment of around Rs 3.6 crore for advertising services. The fintech company told the tribunal that WinZO stopped payments after the real-money gaming ban came into effect.

The matter was heard by Judicial Member Justice Jyotsna Sharma and Technical Member Anu Jagmohan Singh. WinZO has been granted two weeks to submit its reply, with the next hearing scheduled for December 15.

Appearing for Paytm, Senior Advocate Krishnendu Datta said the dues arose from four invoices related to WinZO’s promotions on Paytm’s app.

WinZO, represented by Senior Advocate Abhishek Malhotra, maintained that the invoices were under internal audit and had not been validated as required by its purchase order terms. The NCLT has issued notice to WinZO for further consideration.