Commercial insolvency in winding up proceedings established by an unsatisfied tribunal decree and continued non-payment

An unsatisfied Debt Recovery Tribunal decree, left untouched in appeal, was treated as prima facie evidence that the respondent-company could not pay its debts. The unpaid decretal amount supported a finding of commercial insolvency for winding up purposes, because the record showed continued non-payment of an admitted debt. On that basis, the company petition for winding up was admitted and made returnable, with directions for advertisement and issuance of notice.

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Issues: Whether the company petition for winding up should be admitted on the ground that the respondent-company was unable to pay its debts and was commercially insolvent.

Analysis: The petition was founded on an unsatisfied decree of the Debt Recovery Tribunal, which had not been interfered with in appeal. The record showed that the decretal debt remained unpaid, and this prima facie established inability to pay debts. On that basis, the respondent-company was found to be commercially insolvent for the purpose of winding up proceedings.

Conclusion: The winding up petition was admitted and made returnable, with directions for advertisement and issue of notice.

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