https://www.taxtmi.com/caselaws?id=112830 A winding up petition based on debt is maintainable where the liability is admitted or otherwise established and the company is unable to pay in a commercial sense. A defence will defeat such a petition only if it is bona fide, substantial, and supported by prima facie material. On the facts, the debt was evidenced by the export contract, acceptance of goods, repeated requests for rescheduling, and the company's own acknowledgments. The alleged quality dispute was raised belatedly and was not treated as a genuine defence. Temporary financial difficulty, without a substantial dispute on principal liability, did not prevent winding up proceedings, and the petition was admitted for further steps. en-us Tue, 17 Mar 2009 00:00:00 +0530 Fri, 14 Nov 2014 13:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=112830 A winding up petition based on debt is maintainable where the liability is admitted or otherwise established and the company is unable to pay in a commercial sense. A defence will defeat such a petition only if it is bona fide, substantial, and supported by prima facie material. On the facts, the debt was evidenced by the export contract, acceptance of goods, repeated requests for rescheduling, and the company's own acknowledgments. The alleged quality dispute was raised belatedly and was not treated as a genuine defence. Temporary financial difficulty, without a substantial dispute on principal liability, did not prevent winding up proceedings, and the petition was admitted for further steps. Case-Laws Companies Law Tue, 17 Mar 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=112830