https://www.taxtmi.com/caselaws?id=111879 A belated allegation of defective supply, raised only after statutory notice and unsupported by contemporaneous complaint, independent technical evidence, or reliable proof, is not a bona fide dispute capable of defeating a winding-up petition. Where correspondence and a balance confirmation indicate acknowledgment of substantial liability, and the company neither pays nor secures the admitted debt after notice, the debt is treated as due and payable. The article also notes that severe losses and erosion of net worth may support the conclusion that the company is unable to pay its debts in winding-up proceedings under the Companies Act, 1956. en-us Wed, 02 Jul 2008 00:00:00 +0530 Fri, 05 Dec 2014 14:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=111879 A belated allegation of defective supply, raised only after statutory notice and unsupported by contemporaneous complaint, independent technical evidence, or reliable proof, is not a bona fide dispute capable of defeating a winding-up petition. Where correspondence and a balance confirmation indicate acknowledgment of substantial liability, and the company neither pays nor secures the admitted debt after notice, the debt is treated as due and payable. The article also notes that severe losses and erosion of net worth may support the conclusion that the company is unable to pay its debts in winding-up proceedings under the Companies Act, 1956. Case-Laws Companies Law Wed, 02 Jul 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=111879