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2013 (8) TMI 615 - HC - Companies LawWinding up Petition u/s 439 r.w. 433(e) and 434 of the Companies Act, 1956 - The Court had to examine if the debt is bona fide disputed and whether the company had the ability to and was willing to pay the debt – Held that:- The Directors were directed to strictly comply with the requirements of Section 454 of the Act and Rule 130 of the Rules and furnish to the OL a statement of affairs in the prescribed form verified by an affidavit - After considering the history of the litigation, and the fact that they claimed that it was a profit making company that had the capacity to pay the admitted liability – the Court considers it appropriate to grant - one more opportunity to pay the admitted liability was granted. In Madhusudan Gordhandas & Co. v. Madhu Woollen Industries (P.) Ltd. 1971 (10) TMI 49 - SUPREME COURT OF INDIA - The principles on which the court acts are first that the defence of the company was in good faith and one of substance, secondly, the defence was likely to succeed in point of law and thirdly the company adduces prima facie proof of the facts on which the defence depends - No bona fide defence in the winding up petition and was unwilling and therefore unable to pay the admitted liability - the defence as to why it will not pay the admitted debt was neither one of substance nor in good faith – they had also not been able to satisfy the Court that it was willing to make payment of the admitted debt – prima facie case had been made out for admitting the petition and appointing a provisional liquidator - the order to be kept in abeyance for a period of six weeks - If such payment was not made then the order will become immediately operational.
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