Daijiworld Media Network- Mumbai

Mumbai, Aug 29: Cash-strapped payments solutions company AGS Transact Technologies Ltd. has been admitted into insolvency proceedings by the Mumbai bench of the National Company Law Tribunal (NCLT).

The development comes after Securitrans India Pvt, one of its operational creditors, moved the tribunal over unpaid dues of Rs 2.4 crore. Acting on the plea, the NCLT appointed Brijendra Kumar Mishra as the interim resolution professional to oversee operations, replacing the company’s board and management.

With the admission, a moratorium under Section 14 of the Insolvency and Bankruptcy Code (IBC), 2016 has been imposed. The order prohibits the transfer or sale of assets, halts legal proceedings, and restricts enforcement of security interests against the company until either a resolution plan is approved or liquidation is ordered.

The tribunal further directed that the decision be communicated to all stakeholders, including the Registrar of Companies, which must update AGS’ status on the Ministry of Corporate Affairs portal within seven working days.

Once a dominant player in India’s ATM servicing industry, AGS Transact has been reeling under financial stress for the past six months. The crisis resulted in disruptions in ATM cash fulfillment across banks, inconveniencing lakhs of customers nationwide.