UMESH CHANDRA BANERJEE, J.

( 1 ) THE basic requirement of the provisions of section 434 of the Companies Act is the existence of a debt due and payable by the company to the petitioning creditor and in the event the petitioning creditor establishes such a claim even though prima facie, question of the maintainability of the petition under the provisions of the Companies Act for winding up of the company cannot be doubted. At this juncture it is to be noted that this burden lies on the company to satisfy the Court as to the existence of a bona fide dispute in regard to the matter in issue and in the event a debt is bona fide disputed, proper Course would be for the Law Courts not to proceed with the winding up proceedings further and leave be given to the petitioning creditor to file a suit for the adjudication of disputes in the matter in issue. While directing filing of the suit, the Court may, however also, direct furnishing of some securities. Incidentally, it is to be noted however that where a debt is disputed, it is the duty of the Court to go into the question of genuineness or otherwise of the dispute and in the event the Court is primarily satisfied as regards its genuine

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