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2010 (4) TMI 898 - HC - Companies LawWinding up - claim for damages - Held that:- In the present proceedings the test is not to finally assess the merits of the claim or the defence unless the defence is such that it is demurrable. The company court will proceed no further once it sees that a triable issue has been raised which calls for a more detailed scrutiny. Just as it would not do for a company to create an illusion of a defence, it is also mandatory that a petitioning creditor affirmatively establish the debt before the petition can progress to the second stage after admission. It is for such reason that the petitioner has to be left to pursue the claim in the arbitral reference or in a suit that the petitioner may bring. The claim of the petitioner may be pursued in the arbitral proceedings already commenced or in a suit that the petitioner may institute in accordance with law. C.P. No. 199 of 2009 is permanently stayed. For the company's showing in its affidavit, it will pay costs to the petitioner assessed at 1,000 GM.
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