Non-payment of salary does not by itself justify winding up under the Companies Act, 1956.

Non-payment of salary, by itself, does not establish a company's inability to pay its debts for winding up under section 433(e) of the Companies Act, 1956. Salary is remuneration for services rendered and is not treated as a debt in the statutory sense required to invoke that provision. As the claim rested only on unpaid salary, the condition for winding up was not satisfied and the petition was held incompetent.

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Issues: Whether a petition for winding up of a company under section 433(e) of the Companies Act, 1956 is maintainable on the ground of non-payment of salary to an employee.

Analysis: The provision invoked permits winding up where the company is unable to pay its debts. Salary is remuneration for services rendered and is not treated as a debt in the sense required for invoking that provision. As the claim was based only on unpaid salary, the statutory condition for winding up was not satisfied.

Conclusion: The winding-up petition was incompetent and was dismissed.

Ratio Decidendi: Non-payment of salary, by itself, does not establish inability to pay debts for the purpose of winding up under section 433(e) of the Companies Act, 1956.

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