https://www.taxtmi.com/caselaws?id=113309 A winding-up petition under the Companies Act, 1956 cannot be admitted in summary jurisdiction where the company raises a bona fide, substantial dispute as to liability. A mere failure to reply to the statutory notice does not by itself make the debt admitted or trigger the deeming consequence under section 434. Here, liability for basic facility charges during the shut-down period was specifically disputed and was already pending before an arbitrator by consent, so the company court could not conclusively determine the debt in winding-up proceedings. The petition was therefore not maintainable on the basis of an admitted debt. en-us Thu, 18 Mar 2010 00:00:00 +0530 Tue, 14 Oct 2014 09:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=113309 A winding-up petition under the Companies Act, 1956 cannot be admitted in summary jurisdiction where the company raises a bona fide, substantial dispute as to liability. A mere failure to reply to the statutory notice does not by itself make the debt admitted or trigger the deeming consequence under section 434. Here, liability for basic facility charges during the shut-down period was specifically disputed and was already pending before an arbitrator by consent, so the company court could not conclusively determine the debt in winding-up proceedings. The petition was therefore not maintainable on the basis of an admitted debt. Case-Laws Companies Law Thu, 18 Mar 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=113309