Home Case Index All Cases Companies Law Companies Law + HC Companies Law - 2018 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (2) TMI 1419 - HC - Companies LawWinding up of the Company - Held that:- In the case on hand, the respondent has raised a bonafide disputes as regards to the debt and in facts of the case, the proceedings under Sections 433 and 434 of the Companies Act, 1956 is not an alternative method of recovering debt which is disputed only because the plant of the respondent-Company is closed and therefore, it cannot be said that the respondent-Company has neglected to pay on a statutory demand as decided by this Court in the case of Tata Iron & Steel Company Ltd. (2000 (3) TMI 920 - HIGH COURT OF GUJARAT). Considering the aforesaid facts of the case and considering the ratio relied upon by the Apex Court as well as this Court, the affidavits and counter affidavits, it appears that the debt is not an admitted debt and bonafide disputes are raised by the respondent-Company and on the basis of the aforesaid, it cannot be said that nonpayment of bonafide disputed debt would amount to neglect to pay so as to make liable under Sections 433 and 434 of the Act and thus, the present case would not fall under the same.
|