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2016 (7) TMI 1349

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..... winding up petition is a ill suited remedy and it cannot substitute a regular trial or suit. Questions of facts about the execution of the contract and implementation thereof, do arise in such cases and winding up petition cannot be converted into a trial of such claims and rival claims between the parties. Only the civil suit between the parties can be said to be a proper remedy, where the relevant evidence can be led by the parties and the facts alleged can be proved by them. If the parties have any alternative disputed resolution forum agreed between them like arbitration or otherwise, they can definitely resolve such dispute also between them through such alternative dispute redressal mechanism. This winding up petition is not found .....

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..... vices were not delivered by the petitioner's company in terms of the agreement between the parties and, the respondent-company had to incur additional expenses to fulfil their obligation to their consumer namely, Dr. Ambedkar Law University, Chennai. ( 3. ) Paras 1, 7, 8 and last para of the reply of respondent-company Annexure-G, dated 20-8-2013 are quoted below for ready reference: 1. Client informs me that the legal notice sent by your client is bereft of any merit and has been done only to avoid making payment to my client to a tune of ₹ 3,15,779/- (Rupees Three Lakhs Fifteen Thousand Seven Hundred and Seventy-nine only) as several of the services were not delivered by your client as a result of which my client had to i .....

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..... o the respondentcompany under the service contract. This Court is of the considered opinion that if the liability of the creditor is bona fide disputed by the respondentcompany, which is sought to be wound up under the provisions of Section 433(e) read with Section 439 of the Act, the winding up petition is a ill suited remedy and it cannot substitute a regular trial or suit. Questions of facts about the execution of the contract and implementation thereof, do arise in such cases and winding up petition cannot be converted into a trial of such claims and rival claims between the parties. Only the civil suit between the parties can be said to be a proper remedy, where the relevant evidence can be led by the parties and the facts alleged can .....

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