Inability to pay debts can justify winding up where liabilities exceed assets and the business substratum has failed.

Winding up petitions under sections 433(e) and 433(f) are predicated on inability to pay debts demonstrated by an admitted undisputed debt, cessation of business, multiple creditors with similar claims, absence of viable revival or repayment proposals, and liabilities exceeding assets such that the company's substratum for carrying on business has failed; on these factual and legal grounds the petition is allowed and the respondent company is ordered wound up with appointment of the Official Liquidator to administer liquidation.

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Issues: Whether the respondent company is liable to be wound up under section 433(e) and 433(f) of the Companies Act on the ground of inability to pay its debts.

Analysis: The petition, supported by documentary evidence, establishes an admitted debt of the petitioner against the respondent and the respondent has not disputed the debt on substantial grounds. The record shows the respondent has ceased business operations, multiple creditors have filed similar winding up petitions based on unpaid debts, and no viable proposal for repayment or revival of the company has been put forward. The facts indicate that the company's liabilities exceed its assets and its substratum for carrying on business has disappeared, satisfying the conditions envisaged by sections 433(e) and 433(f) of the Companies Act.

Conclusion: The petition for winding up under section 433(e) and 433(f) of the Companies Act, 1956 is allowed and the respondent company is directed to be wound up; direction issued for appointment of Official Liquidator.

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