Dream11 Parent's Insolvency: Plea Decision Reversed by NCLAT

NCLAT Decision:

The National Company Law Appellate Tribunal (NCLAT) overturned insolvency proceedings against Sporta Technologies, citing the NCLT's oversight of the exemption period under the Insolvency and Bankruptcy Code.


Reward Solutions filed for insolvency against Sporta Technologies in February, alleging non-compliance with a lease and license agreement for office space in Mumbai.

Insolvency Petition:

The NCLT admitted the insolvency plea against Sporta Technologies on February 13, 2024, based on the alleged rent default.

Urgent Intervention:

Dream11's COO Bhavit Sheth filed an urgent petition with the NCLAT, leading to the halt of insolvency proceedings against Sporta Technologies on February 14.

Legal Dispute:

The insolvency case stemmed from Reward Solutions' claim of outstanding license fees totaling INR 7.61 Cr, covering the exemption period from March 27, 2020, to March 26, 2021.

Challenges Faced:

Indian online gaming startups, including Dream11, confront challenges such as the 28% GST on the sector and significant GST notices, exemplified by Dream11's INR 28,000 Cr GST notice from DGGI.

Dream11's Resilience:

Despite legal and financial challenges, Dream11 witnessed a substantial increase in its user base, reaching 21 million users, and experienced a 32% year-on-year increase in net profit in FY23.


The NCLAT's decision and the legal dispute between Reward Solutions and Sporta Technologies underscore the complexities faced by Indian startups amid regulatory and financial pressures.

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