failure to obtain payment, he alleged that the company was unable to pay its debts and asked for a winding up order ... pay its debts. He, however, contended that the debts contemplated by Section 38(1) were not any debts, but only hanking debts. He proceeded
such as, " a company shall be deemed to be unable to pay its debts " as also the expression ... construction, that inability to pay debts must refer to debts absolutely due that is to say, debts for which a creditor may go at once
company to pay the sum due. The company is deemed to be unable to pay its dues if it neglects to pay the same ... three weeks to pay. If it takes three weeks for payment, it cannot be castigated as being unable to pay its debts. There is thus
company is unable to pay its debts. The inability of the
company to pay its debts would necessarily have to be proved ... pay its debts.
For reasons already discussed above and, in particular, the
reason that refusal to pay, failure to pay and inability to pay
private company below
two:
(e) if the Company is unable to pay its debts;
(g) if the Court is of opinion that it is just ... 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
duly stated in the insolvency petition that he was unable to pay the debts and mentioned the value of the movable assets. There ... persons who are unable to pay their debts and not of persons who are merely unwilling to pay their debts although about
payment or inability to pay, the petitioning creditor may still prove that the company is otherwise unable to pay its debts. The debt ... held as follows :
'.....inability to pay debts must refer to debts absolutely due, that is
to say, debts for whicb a creditor
provisions of the Companies Act that the respondent-company is unable to pay its debts, the court has no obligation to grant any relief ... Companies Act a presumption is created that the company is unable to pay its debt, if within the stipulated period after service of the statutory
which the Court gives to a creditor against a Company unable to pay its debts."
Even if the winding up of a Company ... hold definitely whether or not this company was insolvent & unable to pay its debts.
12. Lastly, Mr. Das argued that an order for compulsory
company on the allegation that the company is unable to pay its debts. After the petition presented by the respondent for the winding ... insolvency and the company will be deemed to be unable to pay its debts on the expiry of the prescribed period after the service
