https://www.taxtmi.com/caselaws?id=96856 A winding-up petition was examined on two grounds: inability to pay debts and the just and equitable ground. The Court held that commercial insolvency was not proved because the relevant test was whether immediately available funds and realizable resources were insufficient, and uncalled share capital could be treated as available for meeting liabilities. It also held that the just and equitable ground failed because there was no affirmative proof that the company lacked a reasonable prospect of trading at a profit; the petition relied mainly on the balance sheet and did not show fraud, reckless dissipation, or absence of business prospects. The petition for compulsory winding up therefore failed and the company was allowed to continue. en-us Fri, 06 Dec 1940 00:00:00 +0530 Wed, 11 Jan 2012 16:26:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96856 A winding-up petition was examined on two grounds: inability to pay debts and the just and equitable ground. The Court held that commercial insolvency was not proved because the relevant test was whether immediately available funds and realizable resources were insufficient, and uncalled share capital could be treated as available for meeting liabilities. It also held that the just and equitable ground failed because there was no affirmative proof that the company lacked a reasonable prospect of trading at a profit; the petition relied mainly on the balance sheet and did not show fraud, reckless dissipation, or absence of business prospects. The petition for compulsory winding up therefore failed and the company was allowed to continue. Case-Laws Companies Law Fri, 06 Dec 1940 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96856