https://www.taxtmi.com/caselaws?id=235002 A factoring agreement imposed recourse liability on the client if the approved debtor defaulted. The respondent's repeated acknowledgments of liability, requests for more time, and dishonoured cheques supported the creditor's claim. Applying the principle that a bona fide and substantial dispute to the debt can defeat winding up, but an undisputed debt must be paid and winding up cannot be used merely as debt recovery, the Court found the defence neither bona fide nor substantial. The winding up petition was therefore maintainable and was admitted, with a provisional liquidator appointed. en-us Tue, 07 May 2013 00:00:00 +0530 Mon, 08 Jul 2013 07:49:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=235002 A factoring agreement imposed recourse liability on the client if the approved debtor defaulted. The respondent's repeated acknowledgments of liability, requests for more time, and dishonoured cheques supported the creditor's claim. Applying the principle that a bona fide and substantial dispute to the debt can defeat winding up, but an undisputed debt must be paid and winding up cannot be used merely as debt recovery, the Court found the defence neither bona fide nor substantial. The winding up petition was therefore maintainable and was admitted, with a provisional liquidator appointed. Case-Laws Companies Law Tue, 07 May 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=235002