Principle

COMPANY LAW — Winding-Up — Inability to Pay Debts — Counter-Claim as Basis for Disputing Debt in Winding-Up Proceedings

Area of law
COMPANY LAW
Court
Supreme Court

A counter-claim on the same contract disputes the debt. The principle applies to company law. The disputed debt must be resolved in ordinary proceedings. The rule prevents winding-up on questionable debts. The court will dismiss the petition. The principle is well-established.

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