Winding-up for inability to pay debts allowed after the company failed to show a bona fide dispute over the unpaid debt.

A company was held liable to be wound up where the creditor's debt was proved by affidavit evidence and documentary material, and the company's witness was not cross-examined despite opportunity. The notice of admission and advertisement of the winding-up petition elicited no opposition, while the alleged objections based on defective supply and variation from the purchase order were raised only belatedly and were not supported by earlier protest or credible material. On that record, the court found the debt remained unpaid, the defence was not bona fide, and the winding-up petition was allowed.

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Issues: Whether the respondent-company was liable to be wound up on the ground that it was unable to pay its debts and the defence raised against the claim was not bona fide.

Analysis: The petitioner's claim was supported by affidavit evidence and documentary material, and the witness was not cross-examined despite opportunity. The notice of admission and advertisement of the winding-up petition did not evoke any opposition. The alleged dispute regarding defective supply and variation from the purchase order was raised only at a late stage and was not shown to be genuine or supported by earlier objections. On the record, the court found that the debt remained unpaid and that the respondent had failed to displace the petitioner's case.

Conclusion: The respondent-company was held unable to pay its debts, the dispute raised was treated as not bona fide, and the winding-up petition was allowed.

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