Bona fide dispute over interest claim cannot be tried in winding up when liability depends on evidence and parties' intention.

A bona fide dispute over entitlement to interest on amounts paid towards share allotment cannot be decided in a winding up proceeding where liability depends on the parties' intention and other evidentiary matters. The respondent disputed the interest claim, and the effect of the receipt of the payment could not be determined without evidence. Because the dispute was debatable and required factual adjudication, the winding up court was not the proper forum to decide it, and the dismissal of the petition was upheld.

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Issues: Whether a winding up petition could be maintained where the claim for interest on the amount paid towards share allotment was disputed and required evidence for determination.

Analysis: The entitlement to interest arose from the parties' arrangement regarding payment of Rs. 35 lakhs towards share allotment, but the respondent disputed liability. The amount had been received without specific protest as to interest, and the question turned on the parties' intention and the effect of the receipt, matters that could be resolved only on evidence. A winding up proceeding is not the proper forum for adjudicating such a bona fide and debatable dispute.

Conclusion: The disputed claim for interest could not be gone into in the winding up proceeding, and the dismissal of the petition was upheld.

Ratio Decidendi: A bona fide dispute requiring evidentiary determination cannot be decided in a winding up proceeding.

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