Dismissal of Winding-Up Petition Due to Unpaid Debts Noted as Bona Fide Dispute

The court dismissed the winding-up petition filed by a former promoter Director of the respondent company due to unpaid debts, noting a bona fide dispute over the alleged balance amount. The court found that the petition was not filed in good faith but as a threat for debt recovery, emphasizing the lack of merit in the petitioner's claim.

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Issues:
Petition filed for winding-up of respondent company due to inability to pay debts.

Analysis:
The petitioner, a former promoter Director of the respondent company, filed a petition for winding-up due to unpaid debts. The petitioner held 3333 equity shares and advanced a significant amount at the time of incorporation. Allegations of differences with other Directors led to the petitioner's resignation, followed by a request for refund of the unsecured loan amount. Despite partial repayment, a substantial balance remained unpaid. The petitioner issued a legal notice for the outstanding amount, which led to a reply from the respondent company admitting the loans but claiming a dispute over the repayment terms. The respondent company argued that the balance amount was adjusted against depreciation and losses, and a portion was already repaid to the petitioner. The court noted a bona fide dispute raised by the respondent company regarding the alleged balance amount, concluding that the winding-up petition was not filed in good faith but as a threat for debt recovery. Consequently, the court dismissed the winding-up petition, emphasizing the lack of merit in the petitioner's claim.

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