A petition presented ostensibly for a winding-up order but really to exercise pressure will be dismissed, and under circumstance may be stigmatized as a scandalous abuse of the process of the Court. A Company Court cannot be reduced as a debt collecting agency or as a means of bringing improper pressure on the company to pay a bona fide disputed debt. An action may lie in appropriate Court in respect of the injury to reputation caused by maliciously and unreasonably commencing liquidation proceedings against a company and later dismissed when a proper defence is made out on substantial grounds.


  • Amalgamated Commercial Trades (P.) Ltd. v. Krishnaswami, (1965) 35 Com Cases 456 (para 13)
  • Madhusudan Gordhandas & Co. vs. Madhu Wollen Industries Pvt. Ltd.,  (1971) 3 SCC 632 (para 32)
  • Mediquip Systems (P) Ltd. v. Proxima Medical System GMBH, AIR 2005 SC 4175 (para 18)
  • Vijay Industries vs. NATL Technologies Limited,  (2009) 3 SCC 527 (para 31)
  • IBA Health vs. Info-Drive Systems, (2010) 10 SCC 553 (para 18, 25 & 27)