# In the matter of Getit Grocery Private Limited (IB)-295(PB)-2017

> NCLT judgment dated 2018-01-08. Citation: TCN-2018-NCLT-01952. Innovsource Private Limited, an operational creditor, filed an application under Section 9 of…

- **Court:** NCLT
- **Order date:** 8 Jan 2018
- **Citation:** TCN-2018-NCLT-01952
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/getit-grocery-private-limited-ib-295pb-2017-b3146870

## Summary

### Background

Innovsource Private Limited, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Getit Grocery Private Limited, the corporate debtor, for unpaid operational debt. The operational creditor provided manpower outsourcing services to the corporate debtor under a staffing service agreement. The corporate debtor failed to reimburse the operational creditor for services rendered in July and August 2016, leading to the application.

## Facts

Innovsource Private Limited (Operational Creditor) provided manpower outsourcing services to Getit Grocery Private Limited (Corporate Debtor) under a staffing service agreement executed on 2015-06-04. The agreement was valid from 2015-05-14 to 2016-05-13 and extended to 2017-05-13. The Corporate Debtor failed to reimburse the Operational Creditor for services rendered in July and August 2016, totaling Rs. 3,96,16,509. The Operational Creditor sent a demand notice on 2017-05-05, delivered on 2017-05-22. The Corporate Debtor admitted the debt in emails. The Operational Creditor filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor avoided accepting notices, leading to substituted service. The invoices for the unpaid months

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default in payment of operational debt to the Operational …

**Ratio:** Section 3 (12) of the Insolvency and Bankruptcy Code, 2016 defines 'default' as

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**Reasoning:** The court found that the Corporate Debtor failed to reimburse the Operational Creditor

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**Interpretation:** The definition of 'operational debt' is broad and includes claims for services

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**Application:** The court applied the definition of 'default' and 'operational debt' to the

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## Parties

- **Judges:** M. M. K…; DeepaKr…
- **Appellants:** Innovsource…
- **Respondents:** Getit Grocery…
- **Advocates:** Abhinav M…; Siddharth…

## Timeline

- **2015-06-04 — Agreement E…**: Staffing service agreement executed between Innovsource Private Limited and Getit Grocery…
- **2016-07-01 — Default Com…**: Getit Grocery Private Limited failed to reimburse Innovsource Private Limited for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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