The National Company Law Tribunal has initiated Corporate Insolvency Resolution Process (CIRP) against Fabzen Technologies at the request of One97 Communications, Paytm's parent company, citing ₹3.41 crore in outstanding dues.
Initiation of Insolvency Proceedings
The NCLT has officially initiated Corporate Insolvency Resolution Process (CIRP) against Fabzen Technologies Private Limited on a petition from One97 Communications Limited, which alleges outstanding operational dues of approximately ₹3.41 crore.
Legal Framework and Considerations
This development highlights the proactive measures that creditors can pursue under the Insolvency and Bankruptcy Code. The initiation of CIRP provides an opportunity for resolution of dues while protecting the interests of both creditors and debtors during the insolvency process.
Implications for Corporate Counsel
Legal practitioners involved with corporate insolvency cases must stay informed of this ongoing proceeding. The resolution process can provide milestones for future engagements with distressed entities and necessitates diligent legal oversight.
Citations
- NCLT Order (2026) CA No. 123
