https://www.taxtmi.com/caselaws?id=104635 Winding-up under the Companies Act, 1956 cannot be used to compel payment of a debt bona fide disputed on substantial grounds. A pre-existing quality dispute, settlement request, payment of the admitted amount, civil proceedings for damages and return of cheques, and bank funds sufficient to meet the cheque liability supported a plausible defence. These circumstances did not establish commercial insolvency or loss of substratum. The winding-up petition was therefore not maintainable and was dismissed. en-us Sat, 22 Jan 2000 00:00:00 +0530 Wed, 29 Feb 2012 18:00:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=104635 Winding-up under the Companies Act, 1956 cannot be used to compel payment of a debt bona fide disputed on substantial grounds. A pre-existing quality dispute, settlement request, payment of the admitted amount, civil proceedings for damages and return of cheques, and bank funds sufficient to meet the cheque liability supported a plausible defence. These circumstances did not establish commercial insolvency or loss of substratum. The winding-up petition was therefore not maintainable and was dismissed. Case-Laws Companies Law Sat, 22 Jan 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=104635