Principle

COMPANY LAW — Winding-Up — Inability to Pay Debts — What Constitutes Bona Fide Dispute of Debt

Area of law
COMPANY LAW
Court
Supreme Court

A bona fide dispute must be genuine and based on substantial grounds. The principle applies to company law. A sham or frivolous dispute does not suffice. The rule prevents abuse. The court will examine the basis of the dispute. The principle is well-established.

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