Company inability to pay debts: statutory triggers include creditor demand, unsatisfied execution and tribunal finding. A company is deemed unable to pay its debts if a creditor above the prescribed minimum serves a written demand at the registered office and the company neglects for three weeks to pay, secure or compound the debt; if execution on a decree or order is returned unsatisfied; or if the Tribunal is satisfied the company cannot pay its debts, having regard to contingent and prospective liabilities. A demand is effective if signed by the creditor or an authorised agent, legal adviser or, for a firm, any member.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Company inability to pay debts: statutory triggers include creditor demand, unsatisfied execution and tribunal finding.
A company is deemed unable to pay its debts if a creditor above the prescribed minimum serves a written demand at the registered office and the company neglects for three weeks to pay, secure or compound the debt; if execution on a decree or order is returned unsatisfied; or if the Tribunal is satisfied the company cannot pay its debts, having regard to contingent and prospective liabilities. A demand is effective if signed by the creditor or an authorised agent, legal adviser or, for a firm, any member.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.