https://www.taxtmi.com/caselaws?id=101776 Substitution in a winding up petition is a discretionary remedy, and an applicant must show a proper case as well as an independent right to maintain the petition. Here, the applicants had not demanded payment, had not issued notice under section 434 of the Companies Act, 1956, and the company's uncontroverted accounts showed that no amount was due to them and that they, in fact, owed money to the company. Their claim arose only at the substitution stage, creating a serious bona fide dispute over creditor status. In these circumstances, and where the company had already paid its creditors, no basis existed to infer inability or neglect to pay debts, so substitution was refused. en-us Tue, 28 Feb 1989 00:00:00 +0530 Sat, 11 Feb 2012 11:01:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=101776 Substitution in a winding up petition is a discretionary remedy, and an applicant must show a proper case as well as an independent right to maintain the petition. Here, the applicants had not demanded payment, had not issued notice under section 434 of the Companies Act, 1956, and the company's uncontroverted accounts showed that no amount was due to them and that they, in fact, owed money to the company. Their claim arose only at the substitution stage, creating a serious bona fide dispute over creditor status. In these circumstances, and where the company had already paid its creditors, no basis existed to infer inability or neglect to pay debts, so substitution was refused. Case-Laws Companies Law Tue, 28 Feb 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=101776