NCLT Chandigarh Issues Notice To Gridlogic Games On PhonePe's ₹3.93 Crore Insolvency Plea

The Chandigarh Bench of the National Company Law Tribunal (NCLT) has issued notice to Gridlogic Games Private Limited on an insolvency application filed by PhonePe Limited over alleged unpaid dues of ₹3.93 crore for promotional services rendered on its platform.

The order was passed by Judicial Member K. Biswal and Technical Member K.K. Singh. While issuing notice and granting Gridlogic three days to file its reply, the bench declined a request for any further extension of time.

In doing so, the Tribunal referred to the Insolvency and Bankruptcy Code (Amendment) Act, 2026, which has tightened timelines under the insolvency framework. Among other changes, applications seeking initiation of corporate insolvency resolution proceedings are now required to be admitted or rejected within 14 days, with reasons to be recorded in the event of delay. The Bench indicated that new matters would be dealt with in accordance with the amended regime.

"We also appreciate the amendments in the IBC, the timelines, and the old matters will be dealt with little differently, and this is what we are going to follow in all the new matters now and before us," the Bench orally observed.

"Counsels have to understand it is imperative that the proper advanced service to be done, and the other party, they also appear. Otherwise, they will lose the opportunity of explaining things, because the date that we give, and the reply that we are given the demand notice and all that in Sec 9, we will take cognizance of that," the bench further observed.

PhonePe's claim arises from a Promotional Services Agreement executed on September 21, 2023, with retrospective effect from August 18, 2023. The arrangement continued until August 2025, during which PhonePe promoted Gridlogic's gaming applications on its platform.

Over the course of the engagement, PhonePe raised several invoices for the services rendered. The present dispute concerns 22 invoices that allegedly remained unpaid despite falling due.

In support of its plea, PhonePe also placed reliance on Gridlogic's response to a demand notice issued on December 19, 2025.

Rather than disputing the invoices, Gridlogic attributed its financial difficulties to developments affecting the online gaming sector. In its reply, the company stated that the industry had been facing unprecedented challenges following the enactment of the Promotion and Regulation of Online Gaming Act, 2025 (PROGA).

Gridlogic claimed that the legislation had an immediate and severe impact on gaming operators across the country, resulting in the suspension or seizure of business operations. It further contended that the unforeseen legislative change amounted to a force majeure event affecting not just the company but the online gaming industry as a whole.

The company contended that the legislation had an immediate impact on gaming operators across the industry and had led to the suspension or seizure of business operations.

Gridlogic further contended that the unforeseen legislative change constituted a force majeure event affecting not only the company but the entire online gaming industry.

According to PhonePe, the reply did not address repayment of the outstanding operational debt. The company relied on this aspect in support of its insolvency plea.

After hearing PhonePe, the Tribunal issued a notice to Gridlogic and granted it three days to file its response.

The matter is scheduled to be heard on June 12, 2026.