https://www.taxtmi.com/caselaws?id=335721 A winding-up petition under the Companies Act, 1956 was held inappropriate where the alleged debt was bona fide disputed and triable issues existed over delivery of goods. The court reaffirmed that the phrase "unable to pay its debts" refers to financial inability, not a mere refusal to pay or a genuine contest as to liability. Because the alleged liability itself depended on disputed questions of fact, the summary winding-up jurisdiction could not be used in place of ordinary civil proceedings to compel payment. The petition was therefore not maintainable on the facts and was dismissed. en-us Fri, 02 Dec 2016 00:00:00 +0530 Thu, 08 Dec 2016 06:55:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=335721 A winding-up petition under the Companies Act, 1956 was held inappropriate where the alleged debt was bona fide disputed and triable issues existed over delivery of goods. The court reaffirmed that the phrase "unable to pay its debts" refers to financial inability, not a mere refusal to pay or a genuine contest as to liability. Because the alleged liability itself depended on disputed questions of fact, the summary winding-up jurisdiction could not be used in place of ordinary civil proceedings to compel payment. The petition was therefore not maintainable on the facts and was dismissed. Case-Laws Companies Law Fri, 02 Dec 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=335721