Home Case Index All Cases Companies Law Companies Law + HC Companies Law - 2009 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (8) TMI 707 - HIGH COURT OF MADRASWinding up - whether the respondent-company has to be wound up in view of the alleged liability on the respondent as a guarantor as shown in the guarantee letter dated 25-7-1997 and also an agreement dated 1-4-1997? - Held that:- It is well-settled proposition of law that when the respondent who was sought to be wound up was able to show that there was a bona fide dispute with regard to the liability in question, the winding up proceeding is not the proper remedy to resolve the dispute. Apart from that, the appellant was unable to show that there was a debt due and payable by the respondent-company. It is true that two documents were produced before the Court; but the execution, validity and genuineness of the documents have been questioned by the respondent. In such circumstances, it would not be fit or proper to place reliance on those documents to fasten any liability on the respondent or to hold that there was a debt due and payable by the respondent. Hence, the learned Single Judge has taken a correct view that the remedy for the appellant is not to approach the Company Court for winding up, and, hence, the impugned order is sustained. Appeal dismissed.
|