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.
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.
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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