The National Company Law Appellate Tribunal yesterday directed the interim resolution professional of Sporta Technologies, the owner of the fantasy sports platform Dream 11, not to take any steps towards insolvency and keep the company as a going concern.
The direction came in while hearing the appeal by co-founder Bhavit Sheth against the order of NCLT Mumbai delivered in February 2024 initiating insolvency proceedings against the unicorn fantasy platform.
The counsel appearing for interim resolution professional (IRP) argued that the management of Sporta Technologies continued to be with the suspended board of directors, and that they had been scuttling the CIRP as reported by Economic Times.
“We only clarify that IRP is directed not to take any steps in the CIRP, however, IRP being in the place shall keep the company as a going concern,” the NCLAT said in its order dated 3 April. The next hearing is scheduled for tomorrow April 5.
The NCLAT, on February 14 this year, stayed the NCLT Mumbai bench order to initiate a corporate Insolvency Resolution Process (CIRP) against Sporta Technologies. It had stayed the NCLT order over an urgent petition moved by Dream11 co-founder and COO Bhavit Sheth.
The petitioner Reward Solutions itself is going through an insolvency resolution process, and the insolvency plea against Dream11 was filed by its resolution professional. In 2019, a license agreement was executed between Reward Business Solutions, the licensor, and Sporta Technologies for lease of a commercial premise in Mumbai for five years to Sporta Technologies for which terms of payment were defined. However, Dream11 failed to pay the license and a demand note was raised towards Rs 7.61 crore on April 20, 2021, for a period of March 27, 2020, till April 2021 leading to initiation of the present insolvency proceedings
