Winding-up petition admitted where debt was prima facie proved and objections failed to show any genuine dispute.

A winding-up petition may be admitted where the debt is prima facie established, the statutory demand remains unanswered, and the company's objections do not disclose a genuine or substantial dispute. The Delhi HC compared the rival ledger extracts, challans, debit notes, dishonoured cheques and account statements, and found the respondent's version unreliable: the alleged debit notes lacked proper particulars and supporting documents, while the petitioner's debit entries were corroborated by letters and return challans. The Court rejected the challenge to the outstanding balance and interest computation, held that the dishonour of cheques remained unexplained, and admitted the petition, rejecting the respondent-company's objections.

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Issues: Whether the winding-up petition was maintainable on the ground that the respondent-company was unable to pay its debts and whether the objections raised by the respondent disclosed a bona fide dispute sufficient to defeat admission of the petition.

Analysis: The claim was founded on a running account for supply of goods, dishonoured cheques, and a statutory demand notice. The respondent attempted to meet the claim by relying on alleged debit notes, alleged unaccounted payments, and a challenge to the interest calculation and account statements. The Court compared the rival ledger extracts, the supporting challans, the debit notes and the corroborating documents, and found the respondent's version unreliable. The alleged large debit notes were unsupported by proper particulars, printed forms, seals, or challans, whereas the debit entries accepted by the petitioner were supported by detailed covering letters and return challans. The payments pleaded by the respondent were found to have been duly credited, and the challenge to the outstanding balance and interest computation was rejected as unfounded. The Court also held that dishonour of the cheques remained unexplained on the respondent's case and that the factual objections did not disclose any real or substantial dispute.

Conclusion: The winding-up petition was admitted and the objections of the respondent-company were rejected.

Final Conclusion: The Court concluded that the respondent-company was liable to be wound up and directed further steps for conduct of the winding-up proceedings, including appointment of the Provisional Liquidator and compliance with statutory obligations by the directors.

Ratio Decidendi: A winding-up petition may be admitted where the debt is prima facie established, statutory demand has gone unanswered, and the objections raised do not show a genuine or substantial dispute on the debt.

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