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1 - 8 of 8 (0.45 seconds)Section 433 in The Companies Act, 1956 [Entire Act]
Section 439 in The Companies Act, 1956 [Entire Act]
M/S. Vijay Industries vs M/S. Natl Technologies Ltd on 17 December, 2008
20. The principles laid down in the above mentioned cases
indicate that if the debt is bona fide disputed, there cannot be "neglect
to pay" within the meaning of Section 433(1)(a) of the Companies Act,
1956. If there is no neglect, the deeming provision does not come into
play and the winding up on the ground that the company is unable to
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pay its debts is not substantiated and non-payment of the amount of
such a bona fide disputed debt cannot be termed as "neglect to pay"
Amalgamated Commercial Traders (P.) ... vs A.C.K. Krishnaswami And Anr. on 8 January, 1965
In this connection, reference may be made to the judgment of
this Court in Amalgamated Commercial Traders (P) Ltd. v. A.C.K.
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Krishnaswami and another (1965) 35 Company Cases 456 (SC), in
which this Court held that "It is well-settled that 'a winding up petition is
not a legitimate means of seeking to enforce payment of the debt
which is bona fide disputed by the company. A petition presented
ostensibly for a winding up order but really to exercise pressure will be
dismissed, and under circumstances may be stigmatized as a
scandalous abuse of the process of the court."
The Companies Act, 1956
Madhusudan Gordhandas & Co vs Madhu Woollen Industries Pvt. Ltd on 29 October, 1971
19. The above mentioned decision was later followed by this
Court in Madhusudan Gordhandas and Co. v. Madhu Woollen
Industries Pvt. Ltd. 1971) 3 SCC 632.
Mediquip Systems Pvt. Ltd vs Proxima Medical System Gmbh on 17 March, 2005
The principles laid down in the
above mentioned judgment have again been reiterated by this Court in
Mediquip Systems (P) Ltd. v. Proxima Medical Systems (GMBH)
(2005) 7 SCC 42, wherein this Court held that the defence raised by
the appellant-company was a substantial one and not mere moonshine
and had to be finally adjudicated upon on the merits before the
appropriate forum.
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