# In the matter of AGS TRANSACT TECHNOLOGIES LIMITED

> NCLT judgment dated 2025-08-25. Citation: TCN-2025-NCLT-01302. Securitrans India Private Limited, an Operational Creditor, filed a petition under Section 9 of…

- **Court:** NCLT
- **Order date:** 25 Aug 2025
- **Citation:** TCN-2025-NCLT-01302
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/ags-transact-technologies-limited-0c0e8a11

## Summary

### Background

Securitrans India Private Limited, an Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against AGS Transact Technologies Limited, the Corporate Debtor, for a default amount of Rs. 2,37,39,495.20.

## Facts

Securitrans India Private Limited (Operational Creditor) and AGS Transact Technologies Limited (Corporate Debtor) entered into a Services Agreement on May 30, 2010, for cash management services.

The Services Agreement was extended from time to time, with the last extension being on February 5, 2024, for the period from January 1, 2024, to December 31, 2024.

The Operational Creditor alleged a default amount of Rs. 2,37,39,495.20, with the first default occurring on July 10, 2023.

The Operational Creditor issued a demand notice under Section 8 of the Code on December 4, 2024.

The Corporate Debtor responded with a holding letter on December 12, 2024, and a detailed reply on December 25, 2024, alleging breaches of the Services Agreement.

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## Issues and analysis

### Issue 1: Whether the existence of an arbitration clause bars the maintainability of the petition under …

**Ratio:** The existence of an arbitration clause does

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**Reasoning:** The Supreme Court has repeatedly held that the IBC is a separate legal mechanism for

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**Interpretation:** The IBC operates independently of contractual dispute-resolution mechanisms,

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**Application:** The Adjudicating Authority held that the Corporate Debtor's reliance on the

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## Parties

- **Judges:** SAMEER…; NILESH S…
- **Appellants:** Securitrans India…
- **Respondents:** AGS Transact…
- **Other parties:** Brijendra Kumar…; Rs. 2,37,39…
- **Advocates:** Shyam Ka…; Fatema Kac…; +4 more

## Timeline

- **2010-05-30 — Services Ag…**: Securitrans India Private Limited and AGS Transact Technologies Limited entered into a…
- **2024-02-05 — Services Agreement…**: The Services Agreement was renewed for a further period of one year, i.e., from January…

## 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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