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Issues: (i) Whether defects in the verification of the winding-up petition and in the authority of the deponent were fatal or curable; (ii) Whether the respondent's dispute regarding the debt was bona fide and whether a deposit order could be made in the winding-up proceedings.
Issue (i): Whether defects in the verification of the winding-up petition and in the authority of the deponent were fatal or curable.
Analysis: Rule 21 of the Companies (Court) Rules, 1959 requires verification by affidavit in the prescribed form, but the proviso permits leave to any duly authorised person. The Court held that irregularities in the form of affidavit or verification are not fatal where the petition is otherwise maintainable, and such defects may be cured by granting time and permission under the Court's inherent power and Rule 9 of the Companies (Court) Rules, 1959.
Conclusion: The defects were held to be curable, and the petitioner was granted time to remove them.
Issue (ii): Whether the respondent's dispute regarding the debt was bona fide and whether a deposit order could be made in the winding-up proceedings.
Analysis: A debt dispute defeats winding up only if it is bona fide, substantial, and genuine. On the admitted facts, the petitioner had paid share application money, shares were not allotted, the regulatory application was rejected, and RBI repeatedly directed refund, yet the respondent withheld the amount. The Court found the defence to be an afterthought and not a genuine dispute, and treated the continued non-payment as inability to pay debts under Section 434(1)(a) of the Companies Act, 1956. In those circumstances, the Court considered it appropriate to require deposit of the amount claimed as a test of bona fides and as an interim safeguard.
Conclusion: The dispute was held not bona fide, and the respondent was directed to deposit the claimed amount within four weeks.
Final Conclusion: The winding-up petition was not finally disposed of, but the Court accepted the petitioner's challenge to the respondent's defence, allowed curing of procedural defects, and ordered deposit of the admitted claim before further hearing.
Ratio Decidendi: In a winding-up petition, procedural defects in affidavit or authorisation are curable, and where the alleged debt is not shown to be genuinely disputed, the Court may treat the non-payment as inability to pay debts and direct deposit as an interim measure.
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