https://www.taxtmi.com/caselaws?id=104320 A company may be wound up under the Companies Act, 1956 where its inability to pay admitted debts is shown by the record. The company here did not seriously dispute the debt, admitted financial inability to pay, and failed to comply with a prior court direction to deposit the admitted dues. Its factory had remained closed for a long period, no rehabilitation scheme was produced, and the admitted financial crunch indicated that it could not discharge its liabilities. On those facts, the court held that continuing the company would serve no useful purpose and allowed the winding-up petition. en-us Tue, 18 Aug 1998 00:00:00 +0530 Tue, 28 Feb 2012 16:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=104320 A company may be wound up under the Companies Act, 1956 where its inability to pay admitted debts is shown by the record. The company here did not seriously dispute the debt, admitted financial inability to pay, and failed to comply with a prior court direction to deposit the admitted dues. Its factory had remained closed for a long period, no rehabilitation scheme was produced, and the admitted financial crunch indicated that it could not discharge its liabilities. On those facts, the court held that continuing the company would serve no useful purpose and allowed the winding-up petition. Case-Laws Companies Law Tue, 18 Aug 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=104320