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2014 (7) TMI 774 - HC - Companies LawWinding up petition - unable to pay debts - dispute with regard to the application and the allotment of shares - Held that:- In a petition seeking winding up of a company for its inability to pay its debt, what is to be seen is whether there is a debt and whether a plausible defence is raised by the respondent for the non payment of the debt and to the winding up petition. In case a plausible defence is raised which is neither sham nor moonshine, the company is not to be wound up in exercise of powers under section 433 and 434 of the Companies Act, 1956. The disputes raised in the present petition and by way of defence would be required to be settled before a civil court. Since the petitioner has already filed a suit of recovery of the same amount and the disputes and the rival contentions raised by the parties are being adjudicated upon in the civil court, the present petition would not be maintainable. - present petition not maintainable.
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