https://www.taxtmi.com/caselaws?id=96908 The central issue is whether a winding-up petition founded on a statutory demand is maintainable where the company denies liability and raises a bona fide dispute or counterclaim. Applying the statutory test of inability to pay debts, the Court held that a genuine, substantial bona fide dispute as to liability, or a bona fide cross claim that may extinguish or reduce the debt, negates the statutory neglect to pay required by section 163; where liability is genuinely disputed, winding-up is not the proper mode, particularly for unliquidated damages, and the petition is therefore not maintainable. en-us Wed, 28 Jun 1944 00:00:00 +0630 Fri, 13 Jan 2012 10:39:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96908 The central issue is whether a winding-up petition founded on a statutory demand is maintainable where the company denies liability and raises a bona fide dispute or counterclaim. Applying the statutory test of inability to pay debts, the Court held that a genuine, substantial bona fide dispute as to liability, or a bona fide cross claim that may extinguish or reduce the debt, negates the statutory neglect to pay required by section 163; where liability is genuinely disputed, winding-up is not the proper mode, particularly for unliquidated damages, and the petition is therefore not maintainable. Case-Laws Companies Law Wed, 28 Jun 1944 00:00:00 +0630 https://www.taxtmi.com/caselaws?id=96908