Wipro Limited Tuesday sought dismissal of Ivalua’s insolvency plea before the National Company Law Tribunal (NCLT).
Wipro’s counsel contended that the company was not under any obligation to clear the invoices as the service provided never went beyond the proof-of-concept stage.
A proof of concept is a testing period of the services by the service recipient before the recipient adopts it in a full-fledged way.
Wipro’s counsel informed the tribunal that it had already paid Ivalua at the proof-of-concept stage and since no service was provided beyond it, these invoices were unreasonable. The dispute between the parties was over unpaid payment amounting to about Rs 2.81 crore.
Ivalua Inc, a California-based cloud service provider, had filed an initiation of corporate insolvency resolution process (CIRP) petition against Wipro for unpaid dues stemming from cloud services it provided to the Indian software giant. The counsel for Ivalua argued that according to the service agreement dated July 28, 2021, Ivalua had provided cloud service to Wipro for which it had raised three invoices amounting to over $100,000 each.
The counsel also pointed out that Wipro failed to file a reply to the demand notice within seven days as stipulated by the Insolvency Bankruptcy Code. NCLT has granted time to Ivalua to file a reply and listed the case on July 24.
Source: Economic Times