# In the matter of Cryptograph Technologies Pvt. Ltd. C.P. (IB)No. 177-BB-2020

> NCLT judgment dated 2021-03-04. Citation: TCN-2021-NCLT-02832. M/s. Allegis Services (India) Pvt. Ltd. filed C.P.(IB)No.177/BB/2020 under Section 9 of the…

- **Court:** NCLT
- **Order date:** 4 Mar 2021
- **Citation:** TCN-2021-NCLT-02832
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/cryptograph-technologies-pvt-ltd-cp-ibno-177-bb-2020-104be44a

## Summary

### Background

M/s. Allegis Services (India) Pvt. Ltd. filed C.P.(IB)No.177/BB/2020 under Section 9 of the IBC, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Cryptograph Technologies Private Limited, alleging a default of Rs. 43,12,975/- including interest at 18%. The Operational Creditor and Corporate Debtor entered into an agreement on 01.12.2014 for certain services, which was in force until 30.11.2015. Subsequently, another agreement was entered into on 14.03.2016, valid until 13.03.2018. Despite pending invoices, the Operational Creditor continued providing services. The Corporate Debtor acknowledged its debt and made partial payments of Rs. 12,74,840/- but failed to clear the entire liability. The Operational Creditor issued a Demand

…

## Facts

M/s. Allegis Services (India) Pvt. Ltd. (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against M/s. Cryptograph Technologies Private Limited (Corporate Debtor) due to a default of Rs. 43,12,975/- including interest. The Operational Creditor and Corporate Debtor had entered into a service agreement on 01.12.2014, which was valid until 30.11.2015. A subsequent agreement was executed on 14.03.2016, valid until 13.03.2018. Despite pending invoices, the Operational Creditor continued providing services based on assurances of repayment. The Corporate Debtor acknowledged the debt and made partial payments of Rs. 12,74,840/-, but failed to clear the entire outstanding amount. The Operational Creditor issued a Demand

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default in …

**Ratio:** Section 9 of the IBC, 2016 allows an operational creditor to initiate CIRP if a default

…

**Reasoning:** The Corporate Debtor acknowledged the debt and made partial payments, but failed to clear

…

**Interpretation:** The acknowledgment of debt and failure to clear the dues constitute a default

…

**Application:** The Corporate Debtor's acknowledgment of the debt and failure to pay the

…

## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Allegis Services…
- **Respondents:** Cryptograph…

## Timeline

- **2014-12-01 — First Agr…**: Operational Creditor and Corporate Debtor…
- **2015-11-30 — End of First A…**: The first agreement between the Operational…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/cryptograph-technologies-pvt-ltd-cp-ibno-177-bb-2020-104be44a