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2011 (6) TMI 295 - HC - Companies LawPetition filed u/s 433(e), 434(1)(a) & 439 of the Companies Act, 1956 for winding up of the respondent company - petition filed by creditor company- Held that:- For winding up , what is to be considered is not whether the company if it converted all its assets into cash would be able to discharge its debts but whether in a commercial sense the company is insolvent and whether it is unable to meet its current demands although the assets when released may exceed its liabilities. If the debt is bona fide disputed and the defence is a substantial one, the court will not wind up the company. Where the debt is undisputed, the court will not act upon a defence that the company has the ability to pay the debt but the company chooses not to pay that particular debt. It is beyond dispute that the machinery for winding up will not be allowed to be utilize merely as a means for realising its debts due from a company. In particular case, because of the serious dispute with regard to the rate, it cannot be said that the amount claimed by the petitioner in the statutory notice is undisputed amount or admitted amount. Therefore, the company petition does not warrant admission and accordingly, the same is hereby dismissed at the stage of admission.
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