https://www.taxtmi.com/caselaws?id=459511 A winding up petition for alleged non-payment of debt will not lie where the respondent shows a bona fide and substantial dispute supported by the contractual record and the parties' conduct. The Court found that the alleged admissions in the minutes of settlement did not extinguish continuing disputes, and the agreed payments formed part of a broader arrangement involving reciprocal obligations on performance and rectification of defects. The respondent's defence was not shown to be a sham raised merely to defeat notice, and prior payment of a large part of the contract value also weighed against any inference of inability to pay. The petition therefore failed at the threshold. en-us Thu, 07 Mar 2013 00:00:00 +0530 Tue, 17 Dec 2024 18:56:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=459511 A winding up petition for alleged non-payment of debt will not lie where the respondent shows a bona fide and substantial dispute supported by the contractual record and the parties' conduct. The Court found that the alleged admissions in the minutes of settlement did not extinguish continuing disputes, and the agreed payments formed part of a broader arrangement involving reciprocal obligations on performance and rectification of defects. The respondent's defence was not shown to be a sham raised merely to defeat notice, and prior payment of a large part of the contract value also weighed against any inference of inability to pay. The petition therefore failed at the threshold. Case-Laws Indian Laws Thu, 07 Mar 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=459511