https://www.taxtmi.com/caselaws?id=98394 A winding-up petition based on a decretal debt should not proceed immediately where the debtor shows a bona fide dispute on substantial grounds. A decree creates a strong presumption of indebtedness, but it is not conclusive in insolvency proceedings, and the court may look beyond it if the challenge is genuine rather than a device to delay payment. Objections that the underlying guarantee was ultra vires and that the consent decree suffered from want of jurisdiction were treated as serious disputes, because the company's objects clause did not clearly authorise the guarantee and the jurisdictional objection was not frivolous. In such circumstances, the proper course is to leave the dispute for determination in appropriate proceedings. en-us Tue, 03 May 1966 00:00:00 +0530 Fri, 20 Jan 2012 14:33:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98394 A winding-up petition based on a decretal debt should not proceed immediately where the debtor shows a bona fide dispute on substantial grounds. A decree creates a strong presumption of indebtedness, but it is not conclusive in insolvency proceedings, and the court may look beyond it if the challenge is genuine rather than a device to delay payment. Objections that the underlying guarantee was ultra vires and that the consent decree suffered from want of jurisdiction were treated as serious disputes, because the company's objects clause did not clearly authorise the guarantee and the jurisdictional objection was not frivolous. In such circumstances, the proper course is to leave the dispute for determination in appropriate proceedings. Case-Laws Companies Law Tue, 03 May 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98394