https://www.taxtmi.com/caselaws?id=102326 An arbitration clause in a lease agreement does not by itself entitle a company to stay winding-up proceedings under section 34 of the Arbitration Act, 1940. The company court must still assess whether the defence raised is bona fide and prima facie sustainable on facts and law before granting a stay. Where the record shows repeated demands, admissions of irregular payment, and no meaningful defence beyond a request for indulgence, no bona fide dispute requiring arbitral determination is established. In such circumstances, stay of the winding-up petition is neither just nor equitable, and the winding-up proceedings may continue. en-us Fri, 28 Feb 1992 00:00:00 +0530 Tue, 14 Feb 2012 14:58:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=102326 An arbitration clause in a lease agreement does not by itself entitle a company to stay winding-up proceedings under section 34 of the Arbitration Act, 1940. The company court must still assess whether the defence raised is bona fide and prima facie sustainable on facts and law before granting a stay. Where the record shows repeated demands, admissions of irregular payment, and no meaningful defence beyond a request for indulgence, no bona fide dispute requiring arbitral determination is established. In such circumstances, stay of the winding-up petition is neither just nor equitable, and the winding-up proceedings may continue. Case-Laws Companies Law Fri, 28 Feb 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=102326