Principle

COMPANY LAW — Winding-Up — Inability to Pay Debts — Winding-Up Petition Not Appropriate Where Debt Is Bona Fide Disputed

Area of law
COMPANY LAW
Court
Supreme Court

A winding-up petition is not appropriate for a bona fide disputed debt. The principle applies to company law. The creditor must first establish the debt. The rule protects companies from premature winding-up. The court will dismiss the petition. The principle is well-established.

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