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2008 (7) TMI 570 - HIGH COURT OF MADRASWinding up – Circumstances in which company may be wound up by Tribunal - Held that:- In a given case, where winding up proceedings is initiated under section 433 of the Companies Act, 1956, it becomes necessary that there must be a debt and the liability should be definite. If there is any substantial defense put forth by the respondent's side, it has got to be decided by the court only on appreciation of evidence and hence no question of winding up to be ordered would arise. The petition filed by the petitioner, though ostensibly looks like a winding up petition, it is not so. This device, in the opinion of the court, is to pressurize the respondent for payment even before thrashing out the liability to be decided by the court of civil law. Under these circumstances, it is well settled that winding up petition cannot be made as a device to pressurise the respondent to make payment as per the demand made by the petitioner. Hence the learned single judge was perfectly correct in rejecting the petition.
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