https://www.taxtmi.com/caselaws?id=109599 A winding up petition cannot be founded on a debt that is no longer enforceable in a civil suit. The Court held that a claim arising from payment for a rights issue fell under article 47 of the Limitation Act, 1963, because the right to share certificates accrued on failure of the consideration. Once three years expired from that accrual, the claim became time-barred for enforcement. Although limitation does not extinguish the debt, the creditor must still show a legally enforceable debt to invoke winding up. The company's non-payment of the time-barred claim therefore did not amount to neglect to pay a debt due under section 434(1)(a). en-us Thu, 05 Jun 2003 00:00:00 +0530 Tue, 10 Apr 2012 18:42:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=109599 A winding up petition cannot be founded on a debt that is no longer enforceable in a civil suit. The Court held that a claim arising from payment for a rights issue fell under article 47 of the Limitation Act, 1963, because the right to share certificates accrued on failure of the consideration. Once three years expired from that accrual, the claim became time-barred for enforcement. Although limitation does not extinguish the debt, the creditor must still show a legally enforceable debt to invoke winding up. The company's non-payment of the time-barred claim therefore did not amount to neglect to pay a debt due under section 434(1)(a). Case-Laws Companies Law Thu, 05 Jun 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=109599