Inability to pay debts triggers winding up when a creditor demand is unmet, execution is unsatisfied, or the Tribunal finds insolvency.

The rule defines inability to pay its debts for an LLP by three grounds: failure to satisfy a creditor's demand or to provide adequate security or restructure or compound the debt to the creditor's reasonable satisfaction; return of execution or other process on a decree or order in favour of a creditor unsatisfied in whole or in part; and proof to the Tribunal that the LLP cannot pay its debts, with the Tribunal taking into account contingent and prospective liabilities.

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