Zapak Mobile Games to face insolvency proceedings

The Mumbai Bench of the National Company Law Tribunal (NCLT) has admitted an application filed by Reliance Net Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Zapak Mobile Games Private Limited, initiating the Corporate Insolvency Resolution Process (CIRP) against the mobile gaming company. The order was pronounced today, July 14, 2025.

The application was filed by Reliance Net Limited on February 12, 2025, claiming a default of Rs 1.32 crore as of November 30, 2024. This amount includes a principal sum of Rs 50 lakh and accrued interest of Rs 82.36 lakh at 10% per annum. The date of default was stated as October 31, 2022.

The financial debt originated from a loan advanced by Reliance Land Private Limited (RLPL) to Zapak Mobile Games Private Limited (then known as Jump Games Private Limited) in October 2007, amounting to ₹5,000,000 with an agreed interest rate of 10% per annum, repayable after 15 years. On June 30, 2009, RLPL transferred its financial undertaking, including this loan, to Reliance Net Limited via a Slump Sale Agreement. The loan became due on October 31, 2022.

Zapak Mobile Games Private Limited admitted the loan but contested the enforceability of the assignment of debt to Reliance Net Limited, arguing that it was not formally notified of the transfer as required by Section 131 of the Transfer of Property Act, 1882.

However, the NCLT Bench, comprising Hon’ble Member (Technical) Shri Sameer Kakar and Hon’ble Member (Judicial) Shri Nilesh Sharma, rejected the Corporate Debtor’s contention. The Tribunal noted that Zapak Mobile Games Private Limited’s own audited financial statements for the year ending March 31, 2023, and a balance confirmation dated March 31, 2023, clearly acknowledged its liability towards Reliance Net Limited, not RLPL. This conduct, along with subsequent communications addressing Reliance Net Limited as the lender, demonstrated the Corporate Debtor’s awareness and acceptance of the assignment. The NCLT concluded that the objection regarding notice of assignment was “legally and factually untenable” and did not create a bar to the maintainability of the application.

NPV Insolvency Professionals Private Limited (formerly known as Mantrah Insolvency Private Limited) has been appointed as the Interim Resolution Professional (IRP). The NCLT has directed Reliance Net Limited to deposit Rs 3,00,000 with the IRP to cover initial CIRP costs.

A moratorium under Section 14 of the IBC has been declared, prohibiting various actions against the Corporate Debtor, including the institution or continuation of suits, transfer of assets, and enforcement of security interests. The IRP is mandated to make a public announcement of the CIRP immediately.

Zapak, a division of Reliance Entertainment Digital, is a gaming company. It worked closely with leading Entertainment & Telecom giants such as Universal Studios, Cartoon Network, POGO, Discovery Kids, Airtel, Vodafone, Idea Cellular to give the next billion users coming online in India and around the world, a fun-filled gaming experience.

From famous cricket games like T20 Cricket, Gujarat Lions 2017 to hit TV Series running game Little Singham, Zapak Players from all over the world experience endless excitement, achieve amazing high scores, challenge friends & compete in one of India’s biggest games collection.

Reliance Entertainment was is the media and entertainment arm of Reliance Anil Dhirubhai Ambani Group and is engaged in the creation and distribution of content across film, television, digital and gaming platforms.

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