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2018 (8) TMI 1537 - HC - Companies LawWinding up of respondent company under Section 433 (e) on the ground of inability to pay the debt - proof of bonafide debt - Held that:- As pointed out that since it is a BOT project with a concession period of 25 years, therefore, the entire cost of the project has been borne by the company which is to be recovered through toll collection during the concession period. Alongwith IA No. 3356/18, the respondent has filed the solvency certificate issued by State Bank of India and certificate of Chartered Accountant Krishnamurthy Jain and Suryawanshi showing its healthy financial state as also the CARE rating wherein the respondent has been rated A+ stable and also enclosed the tax payer counterfoil showing that respondent is paying the huge amount towards income tax. These documents clearly reveal that substrata of the company has not been eroded. That apart undisputedly respondent is a running company having more than 200 employees. It is settled position in law that winding up proceeding cannot be used as a tool to recover the bona-fidely disputed debts as a substitute for recovery suit. The aforesaid analysis of facts clearly reveal that in the present case not only alleged debt is bona-fidely disputed by respondent but financial condition of the company and other circumstances noted above do not make out a case for winding up the company under Section 433(e) of the Act. Hence the company petition is dismissed.
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