Principle

COMPANY LAW — Winding-Up — Inability to Pay Debts — Denial of Debt Amounts to Disputation Requiring Resolution Before Winding-Up

Area of law
COMPANY LAW
Court
Supreme Court

Denial of debt constitutes a disputation requiring resolution. The principle applies to company law. Winding-up cannot proceed on a disputed debt. The rule ensures proper adjudication. The creditor must file an ordinary action. The principle is well-established.

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