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Issues:
1. Admissibility of the claim amount in a winding-up petition. 2. Imposition of conditions in relegating the dispute to a suit in a winding-up petition. Issue 1: The first issue in the judgment revolves around the admissibility of the claim amount in a winding-up petition. The appellant, a petitioning creditor, filed a petition under sections 433, 434, and 439 of the Indian Companies Act, 1956, before a single judge in the company jurisdiction. The petitioning creditor claimed an unpaid amount along with interest, while the company raised defenses related to damages suffered and the total amount owed. The learned judge admitted a certain sum and relegated the balance to a suit upon furnishing a bank guarantee. The petitioner argued that the entire sum should have been admitted, while the company contended that no condition should have been imposed for relegating the dispute to a suit. The court emphasized that the nature of the company's defense should be bona fide and substantial, not mere moonshine, to decide on relegating the dispute to a suit in a winding-up petition. Issue 2: The second issue concerns the imposition of conditions in relegating the dispute to a suit in a winding-up petition. The petitioning creditors cited a judgment to support the argument that the court may permit full security to be furnished and then relegate the petitioning creditor to a suit. The company argued based on legal precedents that when there is a bona fide dispute, there should be no condition imposed. The court highlighted that the court of company jurisdiction should focus on admitting a winding-up petition by exercising discretionary power but should not analyze the nature of the company's defense. The court found the order flawed in terms of both imposing conditions and not ascertaining the inconsistency of the defense without splitting up the accounts. Consequently, the court remitted the matter back to the court of company jurisdiction to reevaluate the claim and defense, leaving aside the admitted amount. The appeals were disposed of without any order on costs. In conclusion, the judgment delves into the intricacies of admitting claim amounts in winding-up petitions and the imposition of conditions in relegating disputes to suits. It emphasizes the need for bona fide and substantial defenses in such proceedings and clarifies the court's role in analyzing defenses in winding-up petitions.
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