Plea against Dream11 parent for Rs 7.6 Cr default admitted by NCLT
- ByStartupStory | February 13, 2024
The National Company Law Tribunal (NCLT) has granted approval for an insolvency plea against Sporta Technologies, the parent company of Dream11, over a rent default exceeding Rs 7.6 crore.
According to Piyush Jani, a resolution professional of Reward Solutions, the company entered a lease and license agreement with Sporta in 2019. This agreement granted Reward Solutions a license for five years, with a monthly fee structure outlined for the duration.
“The Respondent failed to pay the license fee,” stated Jani, emphasizing the non-compliance with the agreement terms.
In response to the demand notice, Sporta cited challenges due to the COVID-19 pandemic and confusion over premises ownership, alleging Reward Solutions lost the opportunity to negotiate fees.
Acknowledging Reward Solutions as the petitioner and demonstrating the existence of operational debt and default, the tribunal determined the case’s admissibility.
“We are of the considered view that this Petition deserves to be admitted under Section 9 of the Code,” affirmed the tribunal order.
Madan Bajrang Lal Vaishnawa has been appointed as the interim resolution professional for the case.
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