winding up of a company
Advocate Varun Dixit
(Querist) 15 December 2010
This query is : Resolved
If the petitioners have filed for winding up of a respondents company due to the respondents being unable to pay its debs, what are the grounds for defence on the respondents to save themselves?
Guest
(Expert) 16 December 2010
The respondent-company will have to pay up the amount claimed if it is correct as per the books of account of both sides, or else, raise a dispute over the contractual rate of interest, damages, if any applicable and prove that the amount claimed cannot be paid as such unless it is properly adjudicated in a civil suit. You may say that your company is financially sound, but since the dispute of claim amount is bonafide, you were unable to pay off the debts. The Company Court satisfies with your contention, will dismiss the winding up petition. You may raise any other defences such as no Statutory Notice was received from the petitioner or such other technical grounds.
