Inability to pay debts justified winding-up where the company ignored service, left a loan liability unpaid, and filed no defence.

A company was found unable to pay its debts where service was treated as sufficient by publication and notice, yet it did not appear or file any defence. The record showed an unpaid loan liability and continued non-payment despite demand, with no objection disputing the debt or resisting the winding-up petition. On that basis, the court concluded that the company was unable to pay its dues and ordered it to be wound up.

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Issues: Whether the respondent-company was unable to pay its debts and liable to be wound up.

Analysis: The respondent-company did not appear despite service being treated as sufficient through publication and notice. The record showed an unpaid loan liability and non-payment despite demand, and no objection or defence was filed to dispute the debt or resist the winding-up petition.

Conclusion: The respondent-company was held unable to pay its dues and was ordered to be wound up.

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