Winding Up Petition Admission: Small claim size did not bar relief where inability to pay debts was established.

A winding up petition is not barred merely because the debt claimed is not large, if the statutory requirements for admission are otherwise met. The court treated the size of the claim as irrelevant and noted that the amount was above the prescribed threshold. The petition was admitted because the respondent-company admitted financial and inability to make payment, and the debt remained unpaid despite notice, establishing inability to pay debts for winding up purposes. The court therefore accepted the petition and directed publication of notice before the next hearing.

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Issues: (i) Whether a winding up petition could be entertained on the ground that the amount due was not large. (ii) Whether the respondent-company was unable to pay its debt so as to justify admission of the petition under the winding up provisions.

Issue (i): Whether a winding up petition could be entertained on the ground that the amount due was not large.

Analysis: The objection that the claim amount was small was held to be irrelevant where the statutory requirements for winding up were otherwise satisfied. The amount claimed was also above the prescribed threshold.

Conclusion: The objection was rejected and did not bar admission of the petition.

Issue (ii): Whether the respondent-company was unable to pay its debt so as to justify admission of the petition under the winding up provisions.

Analysis: The respondent-company admitted financial crisis and inability to make payment. The debt remained unpaid despite notice, supporting the conclusion that the company was unable to pay its debt for the purpose of the order.

Conclusion: The petition was admitted on the ground of inability to pay debts.

Final Conclusion: The winding up petition was admitted and directions were issued for publication of notice before the next hearing.

Ratio Decidendi: For admission of a winding up petition, the Court must be satisfied that the statutory ingredients of inability to pay debts are made out; the mere fact that the claim amount is not large does not defeat the petition.

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