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2010 (1) TMI 563 - HIGH COURT OF MADHYA PRADESHWinding up of the respondent company seeked on the ground that the company has indebted to the petitioner and is not in a position to pay the petitioner's debts Held that:- Merely on the basis of a photostat copy of the settlement deed, it cannot be said that the debts are admitted debts more particularly when it was specifically stated by the respondent that all the dues have already been paid to the petitioner. The respondent has stated that no court case under section 138 of the Negotiable Instrument Act as alleged by the petitioner was ever filed against it. In the circumstances it was for the petitioner to have filed reliable material to prove his case for winding up the respondent company under 433(e) of the Act. It is now well settled that if the debt is bona fide disputed and the defence is a substantial one, the court will not wind up the company. In the present case the debt is hot free from doubt or controversy. It is not admitted but has been disputed. When the alleged debt of the petitioner is disputed, denied, or doubted it will not be appropriate for this court to allow the petition for winding up of the respondent company. Thus no case is made out to order winding up of the company
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