https://www.taxtmi.com/caselaws?id=99511 Winding-up petitions under the Companies Act are barred where the debtor-company admits liability but adduces prima facie proof of discharge sufficient to raise a bona fide dispute as to existence or quantum of the debt; the court exercises judicial discretion and must examine whether the plea of discharge has a substratum of truth and reasonable prospect of success. Prima facie evidence of payments, transfers or adjustments that could legitimately reduce or extinguish the claimed debt will preclude winding up. Applying these principles, evidence of payments and credit adjustments was held sufficient to raise a bona fide dispute, and the petition was dismissed. en-us Wed, 15 Jun 1977 00:00:00 +0530 Fri, 27 Jan 2012 16:10:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=99511 Winding-up petitions under the Companies Act are barred where the debtor-company admits liability but adduces prima facie proof of discharge sufficient to raise a bona fide dispute as to existence or quantum of the debt; the court exercises judicial discretion and must examine whether the plea of discharge has a substratum of truth and reasonable prospect of success. Prima facie evidence of payments, transfers or adjustments that could legitimately reduce or extinguish the claimed debt will preclude winding up. Applying these principles, evidence of payments and credit adjustments was held sufficient to raise a bona fide dispute, and the petition was dismissed. Case-Laws Companies Law Wed, 15 Jun 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=99511