# In the matter of Welkin IT Services Private Limited C.P. No. 1285-IBC-MB-2021

> NCLT judgment dated 2022-07-14. Citation: TCN-2022-NCLT-01723. Adecco India Private Limited, the Operational Creditor, filed a company petition under Section…

- **Court:** NCLT
- **Order date:** 14 Jul 2022
- **Citation:** TCN-2022-NCLT-01723
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/welkin-it-services-private-limited-cp-no-1285-ibc-mb-2021-a07e0a70

## Summary

### Background

Adecco India Private Limited, the Operational Creditor, filed a company petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Welkin IT Services Private Limited, the Corporate Debtor, for defaulting on payments. The Operational Creditor and Corporate Debtor entered into a Master Service Agreement (MSA) on 26.08.2019, where the Operational Creditor provided staffing support services to the Corporate Debtor. The Corporate Debtor allegedly failed to make payments for these services, leading to the petition.

## Facts

Adecco India Private Limited (Operational Creditor) and Welkin IT Services Private Limited (Corporate Debtor) entered into a Master Service Agreement (MSA) on 26.08.2019. Under the MSA, Adecco was to provide staffing support services to Welkin. Adecco deployed contract employees to meet Welkin's business needs from 08-01-2019 to 07-31-2020. Adecco invoiced Welkin for services rendered between 08-30-2019 and 12-31-2019. Welkin admitted liability to pay via emails dated 10-22-2019, 11-06-2019, and 11-25-2019, promising payments by specific dates in November and December 2019. However, no payments were made. Adecco terminated the MSA on 11-27-2019. Adecco served a Demand Notice in Form 3 under the Insolvency and Bankruptcy Code, 2016, on Welkin, which was delivered on

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## Issues and analysis

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

**Ratio:** A default occurs when a debt has become due

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**Reasoning:** The Corporate Debtor admitted liability to pay the Operational Creditor via emails but

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**Interpretation:** The Insolvency and Bankruptcy Code, 2016 defines default as non-payment of debt

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**Application:** The Corporate Debtor's admission of liability and failure to make payments,

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## Parties

- **Judges:** H.V. Subb…; ANURADHA SANJAY…
- **Appellants:** Adecco India…
- **Respondents:** Welkin IT…

## Timeline

- **2019-08-26 — Master Service…**: Corporate Debtor and Operational Creditor…
- **2019-08-01 — Staffing Se…**: Operational Creditor provided staffing support services to the Corporate Debtor from…

## 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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