Admitted debt and acknowledgment in balance sheet supported winding up and provisional liquidator directions after non-payment.

Balance sheet entries and a subsequent letter acknowledging liability were treated as acknowledgment of debt and as keeping the claim within limitation. After service of a statutory demand under the Companies Act, the respondent neither replied nor paid, so the debt was treated as admitted, undisputed, and unpaid. On that basis, the material supported winding up on the ground of neglect to pay an admitted debt, together with interim winding-up directions and appointment of the Official Liquidator as provisional liquidator.

---

---

Issues: Whether the respondent company had neglected to pay an admitted debt so as to justify winding up proceedings and interim appointment of a provisional liquidator.

Analysis: The debt was supported by the respondent's balance sheet and a subsequent letter acknowledging and admitting the outstanding liability. These materials were treated as acknowledgment of debt and as keeping the claim within limitation. A statutory demand under the Companies Act was served, but the respondent neither replied nor paid the amount demanded. On these facts, the debt was found to be admitted, undisputed, and unpaid.

Conclusion: The requirement for winding up on the ground of neglect to pay an admitted debt was held to be satisfied, and interim winding up directions including appointment of the Official Liquidator as provisional liquidator were made in favour of the petitioner.

---