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2018 (3) TMI 1069 - HC - Companies LawWinding up petition - eligible debt - Held that:- Admittedly, the debt is bonafide disputed. Though the learned counsel for the petitioner submits that the defence is not a substantial one that cannot be countenanced for the reason that the dispute has arisen in relation to the agreement dated 21.01.2011. Series of transactions have taken place. The purchase orders, invoices placed by the petitioner though relates to a restricted period, it cannot be held to be an independent transaction other than the transactions relating to the agreement. Admittedly the contract dated 21.01.2011 contains an Arbitration Clause. Once an Arbitration Clause is provided under the agreement executed between the parties, Arbitration remedy available under the contract has to be invoked rather than pressurizing the respondent to make the payment of dues as claimed, by filing company petition for winding up of the company. It is settled law that the company cannot be wind up when there is bonafide dispute as enunciated by the Hon'ble Apex Court in the case of MADHUSUDAN GORDHANDAS & CO. [1971 (10) TMI 49 - SUPREME COURT OF INDIA]. In such circumstances, no ground made out by the petitioner to wind up the company which is functioning and the defence is a substantial one.
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