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Issues:
- Insolvency of the company - Disputed debt claimed by the petitioners Insolvency of the Company: The court analyzed the company's financial state to determine insolvency. Referring to Buckley on the Companies Acts, the judge highlighted that commercial insolvency is when a company cannot meet current demands, regardless of potential assets. The court found ample evidence of insolvency, including unpaid wages to employees, outstanding bills leading to disconnections, and judgments against the company from various entities. Despite some payments made, the overall financial situation indicated insolvency. The judge concluded that the company was indeed insolvent based on the presented evidence. Disputed Debt Claimed by the Petitioners: The court examined the nature of the debt claimed by the petitioners and the company's counterarguments. The judge emphasized that the ongoing account between the parties could fluctuate but did not negate the current indebtedness. The company contended that various claims against the petitioners warranted deductions from the debt owed, leading to a bona fide dispute on the debt's amount. However, the judge found no evidence that the company's claims exceeded what was owed to the petitioners. The court referenced legal principles stating that a winding-up petition should not be used to enforce a disputed debt. Despite the lack of direct authority on whether the debt's existence or amount must be disputed, the judge referred to relevant sections of the Companies Act, emphasizing that being a creditor is the primary qualification for a winding-up petition. Given the company's insolvency and the lack of substantial dispute regarding the petitioners' creditor status, the judge deemed it unjust to deny the winding-up order based solely on the disputed amount owed. Consequently, the court decided to issue the compulsory winding-up order in favor of the petitioners.
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