https://www.taxtmi.com/caselaws?id=110027 A winding up petition for non-payment of debt is not maintainable where the alleged liability is the subject of a bona fide and substantial dispute. The High Court found that the respondent company had raised a genuine defence based on an arbitration award, prior payments, and the petitioners' connection with the settlement group, and that these material facts were not fairly disclosed. It held that the petitioners had not approached the Court with clean hands. The Court also noted that the company was profit-making and that its financial substratum had not been shown to have collapsed, so inability to pay debts was not established. The petitions were therefore dismissed. en-us Thu, 07 Apr 2005 00:00:00 +0530 Fri, 13 Apr 2012 14:33:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=110027 A winding up petition for non-payment of debt is not maintainable where the alleged liability is the subject of a bona fide and substantial dispute. The High Court found that the respondent company had raised a genuine defence based on an arbitration award, prior payments, and the petitioners' connection with the settlement group, and that these material facts were not fairly disclosed. It held that the petitioners had not approached the Court with clean hands. The Court also noted that the company was profit-making and that its financial substratum had not been shown to have collapsed, so inability to pay debts was not established. The petitions were therefore dismissed. Case-Laws Companies Law Thu, 07 Apr 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=110027