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Creditor's winding-up petition filed for non-payment of dues under Companies Act, 1956. Analysis: The petitioner, a creditor, filed a winding-up petition against the respondent company for not paying Rs. 1,92,670 despite a demand notice. The petitioner alleged the respondent was unable to pay its dues, seeking winding up under section 433(e) of the Companies Act, 1956. The respondent argued that there were mutual material supplies and adjustments leading to a different balance. The respondent claimed the petitioner owed them Rs. 2,06,000 for rent, which was adjusted against the dues. The respondent also mentioned a dispute over shares transfer pending before the CLB, New Delhi. The petitioner contended that the respondent failed to vacate rented flats and pay rent, while the respondent claimed the petitioner did not vacate flats and had outstanding rent. Both parties had differing accounts of the rent due and adjustments made. The court noted a bona fide dispute over the amount owed, emphasizing that a winding-up petition should not be used to enforce payment of a disputed debt. Citing legal precedents, the court highlighted that a genuine dispute precludes the application of deeming provisions for insolvency. The court dismissed the petition, stating it was an abuse of process unless the dispute was not bona fide. The senior advocate for the respondent presented the company's financial health, showing profitability and sound financial status. The court, considering the facts and financial position, found no grounds to issue further notice under the Companies (Court) Rules, 1959, and dismissed the company petition. The court emphasized that a winding-up petition should not be used to resolve common law disputes and should be based on genuine insolvency concerns rather than disputed debts.
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