NISHANT

A winding up petition is not a legitimate means of seeking to enforce payment of the debt which is bona fide disputed by the company.

NISHANT MEHROTRA 25 Jan 2018

A winding up petition is not a legitimate means of seeking to enforce payment of the debt which is bona fide disputed by the company.

SC :: in Amalgamated Commercial Traders (P.) Ltd. vs. A.C.K. Krishnaswami and Anr. :: A petition presented ostensibly for a winding up order but really to exercise pressure will be dismissed, and under circumstances may be stigmatized as a scandalous abuse of the process of the court. At one time petitions founded on disputed debt were directed to stand over till the debt was established by action. If, however, there was no reason to believe that the debt, if established, would not be paid, the petition was dismissed. The modern practice has been to dismiss such, petitions.

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