https://www.taxtmi.com/caselaws?id=207855 A winding up petition for inability to pay debts will not be admitted where the alleged debt is genuinely and substantially disputed. The court noted that a creditor must show a definite debt and commercial inability to pay; mere non-payment after statutory notice is insufficient if the company raises a bona fide dispute. On the facts, the respondent challenged the unit rate and the resulting account balance under a memorandum of understanding, showing a serious dispute about liability. Because there was no prima facie proof of commercial insolvency, admission of the winding up petition was not justified. en-us Tue, 28 Jun 2011 00:00:00 +0530 Fri, 08 Feb 2013 12:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=207855 A winding up petition for inability to pay debts will not be admitted where the alleged debt is genuinely and substantially disputed. The court noted that a creditor must show a definite debt and commercial inability to pay; mere non-payment after statutory notice is insufficient if the company raises a bona fide dispute. On the facts, the respondent challenged the unit rate and the resulting account balance under a memorandum of understanding, showing a serious dispute about liability. Because there was no prima facie proof of commercial insolvency, admission of the winding up petition was not justified. Case-Laws Companies Law Tue, 28 Jun 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=207855