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Admission of winding up petition for outstanding dues. Analysis: The appeal was filed against an order admitting a winding up petition for a sum of Rs. 19,23,402.26 with interest against the appellant company. The company, a registered entity, was involved in trading securities as a Clearing Member. The petitioning creditor, a subsidiary of a recognized stock exchange, claimed outstanding amounts from the company due to defective transactions conducted between 1995 and 1997. Despite notices and demands, the company failed to repay the sums, leading to the winding up petition. The appellant disputed the amount claimed by the petitioning creditor, alleging suppression of facts regarding a pending suit and discrepancies in the figures presented. However, the petitioning creditor clarified that the invoked bank guarantee was part of the adjusted deposit. The appellant relied on legal precedents emphasizing that a winding up petition should not be used to enforce disputed debts, but the court must ascertain the validity of the debt claimed. The court noted that the appellant failed to provide substantial defense or bona fide dispute regarding the outstanding amount. The company's requests for account details did not amount to a denial of liability. Despite doubts about the accuracy of the claim, the company did not dispute its access to transaction records. The court upheld the Company Judge's decision to admit the petition based on the facts presented. As the appeal period elapsed, the court granted a one-month extension for compliance with the original order. Failure to comply would result in the petitioning creditor being allowed to publish advertisements as directed. Ultimately, the appeal was disposed of, affirming the Company Judge's decision to admit the winding up petition based on the company's failure to settle its dues.
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