NCLT Chandigarh Admits Paytm Insolvency Plea Against Eyemyeye Over ₹3 Crore Ads' Dues

The Chandigarh Bench of the National Company Law Tribunal (NCLT) has admitted an insolvency petition filed by One97 Communications Ltd. (Paytm) against Eyemyeye Pvt. Ltd. under Section 9 of the Insolvency and Bankruptcy Code, 2016, over unpaid dues of more than ₹3 crore arising from digital advertising and related services.

The bench of Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal initiated the Corporate Insolvency Resolution Process (CIRP) against Eyemyeye Private Limited for a total operational debt of Rs 3,03,53,925.94.

Eyemyeye Private Limited is a Gurugram-based online eyewear and optical products company.

According to the application, the corporate debtor approached the operational creditor in the first quarter of 2022 seeking such services, following which a business relationship was established based on assurances of timely payment. The operational creditor thereafter rendered services pursuant to purchase orders issued by the corporate debtor and raised invoices corresponding to each order.

It was stated that the corporate debtor made only one payment of Rs 17,55,163 on 16 July 2022 towards an earlier invoice and failed to clear the remaining dues despite repeated communications. The operational creditor issued recovery notices dated 09 August 2023 and 06 September 2023, but no response or payment was received.

Thereafter, the operational creditor issued a demand notice under Section 8 of the Insolvency and Bankruptcy Code on 01 July 2024. Although discussions were held between the parties for settlement of the outstanding dues, no settlement was reached, following which the present Section 9 application was filed.

The Tribunal also noted that an email dated 07 August 2024 showed that the operational creditor had proposed a final settlement plan under which the outstanding amount was to be paid in four instalments, but the proposal did not materialise.

Relying on the Supreme Court's ruling in Mobilox Innovations Pvt. Ltd. v. Kirusa Software Pvt. Ltd., the Bench held that once default is established and the statutory requirements under the Code are satisfied, the application must be admitted.

The Tribunal observed,

“We are of the considered view that the present petition satisfies the conditions specified under Section 9(5)(i) of the Insolvency and Bankruptcy Code, 2016. The operational debt is above the statutory threshold, the default is clearly established, no pre-existing dispute has been brought on record, and the statutory notice under Section 8 has been duly issued.”

Accordingly, the bench admitted Eyemyeye Private Limited into the Corporate Insolvency Resolution Process under Section 9 of the Code, declared a moratorium, and appointed Sanjay Kumar Aggarwal as the Interim Resolution Professional.

The tribunal also directed the operational creditor to deposit Rs 4,00,000 towards the initial CIRP costs for conducting the insolvency process.