TMI Blog1989 (5) TMI 258X X X X Extracts X X X X X X X X Extracts X X X X ..... omplied with. On September 3, 1987, counsel for the petitioners admitted that the entire claim of the petitioners had been paid to them. On August 11, 1988, the counsel for the petitioners made a statement that he did not want to prosecute the petition on behalf of the petitioners since they had entered into a settlement and had received the entire amount due to them. C.A. No. 100 of 1987 in C.P. No. 85 of 1985 was moved by some of the creditors for substitution as petitioners. The application was allowed and counsel for the petitioners was directed to file an amended petition. It is the amended petition on behalf of the fresh creditors allowed to be substituted which is being disposed of. In the petition, it is stated that the petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the machinery for winding up cannot be allowed to be utilized as a means for realizing debts due from the company. If the debt was bona fide disputed, there cannot be neglect to pay within the meaning of section 434(1)( a ) of the Act. The principles on which the company court acts are: (1) that the defence of the company is in good faith and one of substance ; (2) the defence is likely to succeed in point of law; and (3) the company produced prima facie proof of the facts on which the defence depends. In the instant case, the respondent-company has succeeded in proving that their defence is in good faith and one of substance. It was held in Chemical Enterprises v. Kalpanalok Ltd. [1984] 55 Comp Cas 552 (Punj. Har.) that the cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he period of limitation. No express agreement in this behalf could be proved by him nor could an agreement be implied from the course of dealings between him and the company for the period of 25 years during which the dealings continued between the parties. As a matter of fact, such an agreement, either express or implied was negatived by the very terms of the deposit receipt which, apart from mentioning that the monies were received by the company as deposit for 12 months from August 1, 1939, to July 31, 1940, contained, on the reverse, a note that interest would cease on the due date. This was sufficient to establish that the amount shown as due at the foot of the deposit receipt became due and payable on the due date mentioned therein an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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