https://www.taxtmi.com/caselaws?id=215759 An unpaid amount under a credit facility was treated as a debt for winding-up purposes because a present obligation to pay existed, the statutory demand was served, and the sum was neither paid, secured nor compounded within the prescribed period. The Court held that the transaction's label was irrelevant once liability was admitted. It further found no real and substantial bona fide dispute, as reliance on positive net worth and future receivables did not displace the statutory consequence of non-payment after demand. The winding-up petition was therefore admitted on the basis that the company was deemed unable to pay its debts. en-us Mon, 05 Mar 2012 00:00:00 +0530 Tue, 12 Feb 2013 10:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=215759 An unpaid amount under a credit facility was treated as a debt for winding-up purposes because a present obligation to pay existed, the statutory demand was served, and the sum was neither paid, secured nor compounded within the prescribed period. The Court held that the transaction's label was irrelevant once liability was admitted. It further found no real and substantial bona fide dispute, as reliance on positive net worth and future receivables did not displace the statutory consequence of non-payment after demand. The winding-up petition was therefore admitted on the basis that the company was deemed unable to pay its debts. Case-Laws Companies Law Mon, 05 Mar 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=215759