https://www.taxtmi.com/caselaws?id=104530 A winding-up petition under the Companies Act is based on a company's inability to pay debts, not as a debt-recovery mechanism. Where the creditor voluntarily settles the matter through consent terms, accepts payment by instalments, and the parties act upon that settlement, the original cause of action is extinguished. A later default in instalments does not revive the withdrawn petition, though it may at most support a fresh cause of action. Revival was also resisted because it could prejudice third parties who had dealt with the company in the meantime. The application for revival and restoration of the withdrawn company petition was rejected as not maintainable. en-us Fri, 19 Dec 1997 00:00:00 +0530 Wed, 29 Feb 2012 14:36:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=104530 A winding-up petition under the Companies Act is based on a company's inability to pay debts, not as a debt-recovery mechanism. Where the creditor voluntarily settles the matter through consent terms, accepts payment by instalments, and the parties act upon that settlement, the original cause of action is extinguished. A later default in instalments does not revive the withdrawn petition, though it may at most support a fresh cause of action. Revival was also resisted because it could prejudice third parties who had dealt with the company in the meantime. The application for revival and restoration of the withdrawn company petition was rejected as not maintainable. Case-Laws Companies Law Fri, 19 Dec 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=104530