https://www.taxtmi.com/caselaws?id=331488 A winding up petition under section 433(e) of the Companies Act, 1956 should not be used to enforce a disputed claim for interest where the principal has already been paid and no written agreement fixes the interest rate. The court treated the company's denial of liability, the absence of a contractual basis for 24% interest, and the payment of principal during proceedings as indicators of a bona fide dispute rather than an admitted debt. In such circumstances, the claim is better pursued in a civil forum, and disputed interest does not by itself establish inability to pay debts or justify winding up. en-us Fri, 22 Jul 2016 00:00:00 +0530 Wed, 24 Aug 2016 11:03:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=331488 A winding up petition under section 433(e) of the Companies Act, 1956 should not be used to enforce a disputed claim for interest where the principal has already been paid and no written agreement fixes the interest rate. The court treated the company's denial of liability, the absence of a contractual basis for 24% interest, and the payment of principal during proceedings as indicators of a bona fide dispute rather than an admitted debt. In such circumstances, the claim is better pursued in a civil forum, and disputed interest does not by itself establish inability to pay debts or justify winding up. Case-Laws Companies Law Fri, 22 Jul 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=331488