TaxTMI 
TaxTMI 
2012 (3) TMI 607
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....st 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 ₹ 50,00,000/- has not been refunded by the respondent, such sum constitutes a debt in praesenti. Consequently, the sum of ₹ 50,00,000/- constitutes an u....
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.... 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 examination of the company?s insolvency may be a useful aid in deciding whe....
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....ake 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 inability to pay. Of course, if there is no dispute as to the company's liabi....