# In the matter of Ada Cellworks Wireless Engineering Private Limited C.P. 2346-I&BP-2018

> NCLT judgment dated 2019-07-11. Citation: TCN-2019-NCLT-02571. Lexcorp Advisory Services Private Limited filed a Company Petition seeking to initiate the…

- **Court:** NCLT
- **Order date:** 11 Jul 2019
- **Citation:** TCN-2019-NCLT-02571
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ada-cellworks-wireless-engineering-private-limited-cp-2346-ibp-2018-97dcfea9

## Summary

### Background

Lexcorp Advisory Services Private Limited filed a Company Petition seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Ada Cellworks Wireless Engineering Private Limited, alleging a default of Rs. 14,75,000/- occurred on 10.04.2018. The petitioner had provided professional services to the corporate debtor under a Retainership Agreement dated 15.09.2017 and raised an invoice for Rs. 14,75,000/- on 30.03.2018. Despite reminders, the corporate debtor failed to pay. The petitioner terminated the agreement on 03.05.2018. The corporate debtor acknowledged financial difficulties in a letter dated 16.04.2018.

## Facts

Lexcorp Advisory Services Private Limited (Petitioner) provided professional services to Ada Cellworks Wireless Engineering Private Limited (Corporate Debtor) under a Retainership Agreement dated 15.09.2017. An invoice for Rs. 14,75,000/- was raised on 30.03.2018. The Corporate Debtor defaulted on payment despite reminders sent on 13.04.2018 and 16.04.2018. The Retainership Agreement was terminated by the Petitioner on 03.05.2018. The Corporate Debtor acknowledged financial difficulties and inability to pay via letter dated 16.04.2018. A demand notice was issued by the Petitioner on 25.05.2018 under Section 8 of the Code, but the Corporate Debtor neither replied nor repaid the dues. The Petitioner filed an affidavit under Section 9(3)(b) of the Code stating that the

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in making the …

**Ratio:** A default occurs when a debt is due and

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**Reasoning:** The Corporate Debtor failed to pay the invoice of Rs. 14,75,000/- despite reminders and

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**Interpretation:** The failure to pay a debt when it is due constitutes a default under the

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**Application:** The Corporate Debtor's failure to pay the invoice, despite acknowledging the

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Appellants:** Lexcorp Advisory…
- **Respondents:** Ada Cellworks…

## Timeline

- **2017-09-15 — Retainership A…**: Retainership Agreement entered into between…
- **2018-03-30 — Invoice R…**: Lexcorp Advisory Services raised…

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