https://www.taxtmi.com/caselaws?id=98667 Winding up under the Companies Act, 1956 is a discretionary and equitable remedy, and a bona fide dispute as to the debt can prevent the statutory presumption of inability to pay from arising. The court also requires proof of commercial insolvency on the facts; closure of business alone, without clear evidence that liabilities cannot be met, is insufficient. The just and equitable ground demands grave facts showing that winding up is the proper response, and allegations of mismanagement or fraud may not justify that step where other remedies remain available. Suspicion of mala fides may affect the petition's weight, and the balance of equities may justify deferring a final winding up decision. en-us Mon, 28 Jul 1969 00:00:00 +0530 Sat, 21 Jan 2012 15:35:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98667 Winding up under the Companies Act, 1956 is a discretionary and equitable remedy, and a bona fide dispute as to the debt can prevent the statutory presumption of inability to pay from arising. The court also requires proof of commercial insolvency on the facts; closure of business alone, without clear evidence that liabilities cannot be met, is insufficient. The just and equitable ground demands grave facts showing that winding up is the proper response, and allegations of mismanagement or fraud may not justify that step where other remedies remain available. Suspicion of mala fides may affect the petition's weight, and the balance of equities may justify deferring a final winding up decision. Case-Laws Companies Law Mon, 28 Jul 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98667