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Application for winding up under section 433(e) of the Companies Act, 1956 based on unpaid debts. Analysis: The petitioner, a financial consultant, sought winding up of the company under section 433(e) of the Companies Act, 1956, citing unpaid debts. The petitioner claimed that his services were utilized by the company, and despite submitting an invoice for Rs. 67,00,000, the amount remained unpaid. The company disputed the debt, contending that the petitioner had been paid in excess of what was due and had not rendered services as agreed upon. The key issues for consideration were whether a proper demand was made by the petitioner and whether there was a genuine debt due from the company. The court emphasized the importance of a valid notice under section 434 for raising a presumption of the company's inability to pay debts. It was noted that a formal demand, specifically calling upon the company to pay the debt due, was necessary to trigger the presumption under section 434. Merely handing over an invoice was deemed insufficient to constitute a valid notice. The court held that the petitioner failed to meet the requirements for raising the presumption under section 434(1)(a). Regarding the dispute over the debt, the court highlighted that if there was a bona fide dispute, the appropriate forum for resolution was the civil court, not the winding-up court. The company argued that no further services were rendered by the petitioner, disputing the amount claimed. Despite inconsistencies in the company's case, a genuine dispute existed regarding the extent of services rendered and the amount due. Citing precedent, the court concluded that in the absence of clear grounds for winding up, the dispute should be settled in the civil court. In light of the above analysis, the court dismissed the company petition, finding no sufficient grounds for winding up the company under section 433(e). The parties were directed to bear their respective costs, emphasizing the need for resolving the dispute in the appropriate forum, considering the existence of a bona fide dispute over the debt claimed.
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