https://www.taxtmi.com/caselaws?id=104635 A winding-up petition under the Companies Act, 1956 is not maintainable where the debt is bona fide disputed on substantial grounds. The article explains that sections 433(e) and (f), 434 and 439 are not meant to enforce payment of a genuinely contested claim, particularly where the company has raised a quality dispute before cheque presentation, paid the admitted amount, and pursued civil remedies for damages and return of cheques. It also notes that the available bank balance showed capacity to meet the cheque liability, so commercial insolvency and loss of substratum were not established. On these facts, the petition failed 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 A winding-up petition under the Companies Act, 1956 is not maintainable where the debt is bona fide disputed on substantial grounds. The article explains that sections 433(e) and (f), 434 and 439 are not meant to enforce payment of a genuinely contested claim, particularly where the company has raised a quality dispute before cheque presentation, paid the admitted amount, and pursued civil remedies for damages and return of cheques. It also notes that the available bank balance showed capacity to meet the cheque liability, so commercial insolvency and loss of substratum were not established. On these facts, the petition failed and was dismissed. Case-Laws Companies Law Sat, 22 Jan 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=104635