https://www.taxtmi.com/caselaws?id=112204 A winding-up petition is not maintainable where the alleged debt is bona fide disputed and supported by prima facie material. The High Court of Madras noted that winding-up jurisdiction is discretionary and cannot be used as a pressure tactic for recovery of a contested claim. On the facts discussed, the company showed a genuine dispute over the quality of goods, debit notes, and an alleged settlement of liability, so the debt could not be treated as an undisputed or determined sum. The proper remedy in such circumstances is a civil action for adjudication of the claim, and the existence of a substantial defence was sufficient to decline winding-up relief. en-us Mon, 09 Jul 2007 00:00:00 +0530 Fri, 27 Apr 2012 11:03:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=112204 A winding-up petition is not maintainable where the alleged debt is bona fide disputed and supported by prima facie material. The High Court of Madras noted that winding-up jurisdiction is discretionary and cannot be used as a pressure tactic for recovery of a contested claim. On the facts discussed, the company showed a genuine dispute over the quality of goods, debit notes, and an alleged settlement of liability, so the debt could not be treated as an undisputed or determined sum. The proper remedy in such circumstances is a civil action for adjudication of the claim, and the existence of a substantial defence was sufficient to decline winding-up relief. Case-Laws Companies Law Mon, 09 Jul 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=112204