https://www.taxtmi.com/caselaws?id=96907 A demand-based presumption of inability to pay debts was held not to be conclusive for compulsory winding up, because the statutory power to wind up was discretionary rather than mandatory. The company's non-payment arose from a bona fide dispute and a counter-claim alleging irregular conduct, so the refusal to pay was not treated as neglect in the statutory sense. The Court also noted that the disputed sums had been deposited in Court, which was inconsistent with real inability to pay. Compulsory winding up was therefore considered inappropriate, and the company was not treated as having neglected to pay its debts within the meaning of the statute. en-us Wed, 24 May 1944 00:00:00 +0630 Fri, 13 Jan 2012 10:34:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96907 A demand-based presumption of inability to pay debts was held not to be conclusive for compulsory winding up, because the statutory power to wind up was discretionary rather than mandatory. The company's non-payment arose from a bona fide dispute and a counter-claim alleging irregular conduct, so the refusal to pay was not treated as neglect in the statutory sense. The Court also noted that the disputed sums had been deposited in Court, which was inconsistent with real inability to pay. Compulsory winding up was therefore considered inappropriate, and the company was not treated as having neglected to pay its debts within the meaning of the statute. Case-Laws Companies Law Wed, 24 May 1944 00:00:00 +0630 https://www.taxtmi.com/caselaws?id=96907