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2016 (7) TMI 1349 - HC - Indian LawsWinding up petition under Sections 433(e) and 439 - bonafide dispute - respondent-company has failed to pay the said admitted liability - Held that:- Prima facie, there is a bona fide dispute between these two parties about the claim made by the petitioner's Counsel for the alleged service rendered to the respondent-company under the service contract. This Court is of the considered opinion that if the liability of the creditor is bona fide disputed by the respondent-company, which is sought to be wound up under the provisions of Section 433(e) read with Section 439 of the Act, the winding up petition is a ill suited remedy and it cannot substitute a regular trial or suit. Questions of facts about the execution of the contract and implementation thereof, do arise in such cases and winding up petition cannot be converted into a trial of such claims and rival claims between the parties. Only the civil suit between the parties can be said to be a proper remedy, where the relevant evidence can be led by the parties and the facts alleged can be proved by them. If the parties have any alternative disputed resolution forum agreed between them like arbitration or otherwise, they can definitely resolve such dispute also between them through such alternative dispute redressal mechanism. This winding up petition is not found to be maintainable and the same is liable to be dismissed.
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