NCLAT Revives Culver Max's Insolvency Plea Against Fintech Firm Over Sony LIV Marketing Dues

The National Company Law Appellate Tribunal (NCLAT) at Delhi recently revived an insolvency case filed by Culver Max Entertainment Private Limited, the company formerly known as Sony Pictures Network India, against the firm Odishsa based Rechargekit fintech over unpaid dues arising from the marketing of Sony LIV premium subscription plans.

The Appellate Tribunal ruled that the insolvency court could not have rejected the plea without first providing Culver Max a mandatory opportunity to fix technical defects regarding who was authorized to file the case. The matter has now been remanded back to NCLT, Cuttack for a fresh hearing.

A bench of Judicial Member Justice Yogesh Khanna and Technical Member Ajai Das Mehrotra passed the order on December 10, 2025. In setting aside the previous dismissal, the Tribunal emphasized that procedural errors should not immediately end a case.

The bench noted that "it was the duty of the Ld. NCLT to at least put the appellant to notice requiring him to rectify the defect in the application and admittedly the said opportunity was not given in the present case. Hence the impugned order suffers from illegality and needs to be set aside."

The dispute centers on a 2021 agreement where Culver Max, the operator of Sony LIV, hired Rechargekit to market discounted premium subscription codes. As per the contract, Rechargekit was expected to meet a minimum annual guarantee of 6 crore. While Culver Max provided technical access and thousands of subscription codes, it alleged that Rechargekit paid only 5.33 lakh against invoices totaling 3.02 crore.

The NCLT, Cuttack initially dismissed the insolvency plea on account of insufficient authorization. It further noted that the debt fell below the required Rs 1 crore threshold.

Culver Max challenged the dismissal on the grounds that it should have been provided an opportunity to rectify the filing errors before dismissal. It contended that even if the original board resolution was narrow, the tribunal was duty-bound to let them file a fresh, corrected resolution.

The NCLAT however, clarified that it was not making a final decision on the financial merits of the debt. The appellate tribunal observed that the insolvency court must issue a notice for rectification before a petition can be rejected on technical grounds. The case has now been sent back for a fresh hearing, and the NCLT has been directed to decide the matter within two months after Culver Max is allowed to fix its authorization.