2012 (3) TMI 607

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.... O R D E R This Court on 21st November, 2011 had passed a detailed order disposing of the petitioner's application for appointment of Provisional Liquidator. In the said order, this Court had concluded as under:- 24. In the opinion of this Court, as the sum of Rs. 50,00,000/- has not been refunded by the respondent, such sum constitutes a debt in praesenti. Consequently, the sum of ....

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..... (2010) 10 SCC 553 has held that if there is no dispute as to the company's liabilities, the solvency of the company would not constitute a stand alone ground for setting aside a notice under Section 434(1)(a) meaning thereby that if a debt is undisputedly owing, then it has to be paid. The relevant portion of the said judgment is reproduced hereinbelow:- 24. A determination of examinati....

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....1)(a) that the company is unable to pay it debts, the law should take its own course and the company of course will have an opportunity on the liquidation application to rebut that presumption. 25. An examination of the company's solvency may be a useful aid to determining whether the refusal to pay debt is a result of a bona fide dispute as to the liability or whether it reflects an inab....