NCLT Kolkata Admits Section 7 Petition Against Online Gaming Company

The National Company Law Tribunal (“NCLT”), Kolkata Bench, in Ranisati Constructions Company Pvt. Ltd. v. Omnibay Pvt. Ltd., admitted a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) against an online gaming company after concluding that the existence of financial debt and occurrence of default stood sufficiently established through documentary evidence and admitted conduct of the parties.

The Corporate Debtor attempted to dispute the validity of the alleged loan agreement and denied the existence of a legally enforceable financial debt. However, the Tribunal observed that the actual disbursement of funds through RTGS transfers, balance confirmation by the Corporate Debtor and absence of any evidence of repayment clearly demonstrated the existence of a financial debt disbursed against consideration for time value of money. 

The NCLT consequently admitted the petition, imposed moratorium under Section 14 and initiated Corporate Insolvency Resolution Process (“CIRP”) against the Corporate Debtor.