https://www.taxtmi.com/caselaws?id=257526 A winding up petition based on the original guarantee and the company's admissions remained maintainable despite a foreign decree and a separate suit in India for enforcement of that decree. The foreign decree did not extinguish the creditor's right to proceed on the original cause of action. The defence of FEMA illegality was rejected because the objection had been treated as abandoned, no clear statutory bar to the guarantee was shown, and the plea was raised belatedly. The term sheet did not amount to novation, as the contemplated restructuring never took effect and the existing liability under the patronage letter survived. A dishonest or moonshine defence could not defeat winding up where the debt was repeatedly acknowledged. en-us Sat, 19 Jul 2014 00:00:00 +0530 Sun, 15 Mar 2015 10:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=257526 A winding up petition based on the original guarantee and the company's admissions remained maintainable despite a foreign decree and a separate suit in India for enforcement of that decree. The foreign decree did not extinguish the creditor's right to proceed on the original cause of action. The defence of FEMA illegality was rejected because the objection had been treated as abandoned, no clear statutory bar to the guarantee was shown, and the plea was raised belatedly. The term sheet did not amount to novation, as the contemplated restructuring never took effect and the existing liability under the patronage letter survived. A dishonest or moonshine defence could not defeat winding up where the debt was repeatedly acknowledged. Case-Laws Companies Law Sat, 19 Jul 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=257526