# In the matter of Wardwiz (India) Solutions Private Limited

> NCLT judgment dated 2024-07-16. Citation: TCN-2024-NCLT-00992. Quess Corp Limited, the Operational Creditor, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 16 Jul 2024
- **Citation:** TCN-2024-NCLT-00992
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/wardwiz-india-solutions-private-limited-68f49122

## Summary

### Background

Quess Corp Limited, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Wardwiz (India) Solutions Private Limited, the Corporate Debtor. The Operational Creditor provided manpower services to the Corporate Debtor under a Service Agreement dated 25.06.2018. The Operational Creditor claimed that the Corporate Debtor defaulted on payments for invoices raised between April 2019 and September 2019, totaling Rs.8,94,65,473/-. The Operational Creditor issued a Demand Notice dated 10.12.2021, but the Corporate Debtor failed to make any payment. The Corporate Debtor remained absent during the proceedings, and their right to file a reply was forfeited.

## Facts

Quess Corp Limited (Operational Creditor) provided manpower services to Wardwiz (India) Solutions Private Limited (Corporate Debtor) under a Service Agreement dated 25.06.2018. The agreement was valid for one year. The Operational Creditor raised 230 invoices between April 2019 and September 2019, claiming an operational debt of Rs.8,94,65,473/-. The last payment made by the Corporate Debtor was on 10.07.2019. The Corporate Debtor admitted its liability in letters dated 05.03.2020 and 24.04.2020, attributing the delay to the COVID-19 pandemic. A cheque issued by the Corporate Debtor was dishonored due to insufficient funds. The Operational Creditor issued a Demand Notice dated 10.12.2021, which was allegedly served on the Corporate Debtor on 14.12.2021. The Demand

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has demonstrated proper service of the Demand Notice under Section …

**Ratio:** Service of the Demand Notice under Section 8 of the Code is a mandatory pre-condition for

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**Reasoning:** The Tribunal found that the Demand Notice was sent to an incorrect address of the

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**Interpretation:** Section 8 of the IBC and Rule 5 of the AAA Rules are interpreted strictly to

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**Application:** In this case, the Demand Notice was sent to an incorrect address, which is a

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Appellants:** Quess Corp…
- **Respondents:** WARDWIZ (INDIA)…

## Timeline

- **2018-06-25 — Service Agr…**: Service Agreement between Quess Corp Limited and Wardwiz (India) Solutions Private…
- **2019-03-29 — First Date of…**: Invoices raised on this…

## 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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