https://www.taxtmi.com/caselaws?id=101028 A winding-up petition cannot be used to enforce a debt that is bona fide disputed; where the company raises a substantial and good-faith defence, the creditor must pursue civil remedies instead. Here, the company challenged liability with prima facie material, including allegations of manipulated book entries, absence of cash transactions, discrepancies in accounts, and circumstances suggesting fabrication of liabilities. The creditor's reliance on balance-sheet entries and book records was insufficient to displace that defence, and there was no finding that the dispute was a mere cloak for insolvency. The debt was therefore treated as bona fide disputed and the winding-up petition was not maintainable. en-us Tue, 28 Jun 1983 00:00:00 +0530 Wed, 08 Feb 2012 13:12:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=101028 A winding-up petition cannot be used to enforce a debt that is bona fide disputed; where the company raises a substantial and good-faith defence, the creditor must pursue civil remedies instead. Here, the company challenged liability with prima facie material, including allegations of manipulated book entries, absence of cash transactions, discrepancies in accounts, and circumstances suggesting fabrication of liabilities. The creditor's reliance on balance-sheet entries and book records was insufficient to displace that defence, and there was no finding that the dispute was a mere cloak for insolvency. The debt was therefore treated as bona fide disputed and the winding-up petition was not maintainable. Case-Laws Companies Law Tue, 28 Jun 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=101028