(1)A company shall be deemed to be unable to pay its debts-(a)if a creditor, by assignment or otherwise, to whom the company is indebted in a sum exceeding [one lakh rupees] then due, has served on the company, by causing it to be delivered at its registered office, by registered post or otherwise, a demand under his hand requiring the company to pay the sum so due and the company has for three weeks thereafter neglected to pay the sum, or to secure or compound for it to the reasonable satisfaction of the creditor;(b)if execution or other process issued on a decree or order of [any Court or Tribunal] [ Substituted by Act 11 of 2003, Section 52, for " any Court" .] in favour of a creditor of the company is returned unsatisfied in whole or in part; or(c)if it is proved to the satisfaction of the [Tribunal] [ Substituted by Act 11 of 2003, Section 52, for " Court" .] that the company is unable to pay its debts, and, in determining whether a company is unable to pay its debts, the [Tribunal] [ Substituted by Act 11 of 2003, Section 52, for " Court" .] shall take into account the contingent and prospective liabilities of the company.
