BHAJAN SINGH SAMRA Vs. WIMPY INTERNATIONAL LTD.

JUDGEMENT

(1.) This court on November 21, 2011 (Bhajan Singh Samra v. Wimpy International Ltd., 2012 173 CompCas 455(Delhi)) had passed a detailed order disposing of the petitioner's application for the appointment of provisional liquidator. In the said order, this court had concluded as under (page 464):

(2.) Mr. Girdhar Govind, learned counsel for the respondent opposes the direction to release the aforesaid amount to the petitioner on the ground that since the respondent-company has shown its solvency, no further orders are called for in the present proceedings.

(3.) However, the Supreme Court in IBA Health (I) P. Ltd. v. Info-Drive Systems Sdn. Bhd., 2010 10 SCC 553, has held that if there is no dispute as to the company's liabilities, the solvency of the company would not constitute a stand alone ground for setting aside a notice under section 434(1)(a) meaning thereby that if a debt is undisputedly owing, then it has to be paid. The relevant portion of the said judgment is reproduced hereinbelow (page 382 of 159 Comp Cas):