2013 (11) TMI 1348

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..... liability and raising a bona fide disputes. company has paid off the entire principal amount, may be after the winding up petition is advertised. All the creditors who appeared at the post advertisement stage including the present creditors have been paid in entirety. It is only the dispute relating to the payment of interest which is left to be considered in the winding up proceeding. From the admitted fact that the company have paid the entire principal amount, it is demonstrated that the company is otherwise financially solvent and that its continuance in operation would not effect the public at large. Except from a stray statement that the company has pleaded the waiver of the interest, there is no contemporaneous document forthcomin .....

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..... due to Shilpa Sanei and handed over the sum to the Advocate-on-Record of the said creditor. The Court records those payments and directed the company to pay off the balance principal amount due to Shilpa Sanei within four weeks from date and kept the point relating to the claim of interest open and to be decided subsequently. Today the company hands over the demand draft of the rest of the principal amount to the Advocate-on-Record of the Shilpa Sanei and submits that those creditors are not entitled to claim any interest on the said amount. Both the creditors, namely G. S. Fertilisers Private Limited and Shilpa Sanei, submit that the money were unreasonably withheld by the company and therefore, the creditors are entitled to claim the .....

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..... eral agreement. The Court must bear in mind that the winding up proceeding is not a recovery proceeding for enforcing the recovery of the debt. It is not a tool to realise the debts due from the company, nor could be taken out to exert the pressure on the company to pay the dues. The debt must be of an ascertained and/or definite sum. If there is some bona fide disputes so raised, the proper course which the Company Court should adopt is to relegate the parties to a regular civil proceeding. Furthermore, the financial solvency of the company should also be taken in mind in discharging the admitted liability and raising a bona fide disputes. In the present case the company has paid off the entire principal amount, may be after the winding .....

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