https://www.taxtmi.com/caselaws?id=111449 A company may be wound up for inability to pay its debts where the debtor does not dispute the material facts, fails to reply to the statutory demand notice, and leaves the debt unpaid after issuing a cheque that is dishonoured. On those facts, the statutory condition of inability to pay was treated as satisfied. Pendency of proceedings under section 138 of the Negotiable Instruments Act did not bar the winding-up petition, because cheque-dishonour prosecution is distinct from debt-recovery proceedings and is not an alternative to company-law relief. The petition was therefore maintainable and the company was liable to be wound up. en-us Thu, 04 Jan 2007 00:00:00 +0530 Mon, 23 Apr 2012 15:57:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=111449 A company may be wound up for inability to pay its debts where the debtor does not dispute the material facts, fails to reply to the statutory demand notice, and leaves the debt unpaid after issuing a cheque that is dishonoured. On those facts, the statutory condition of inability to pay was treated as satisfied. Pendency of proceedings under section 138 of the Negotiable Instruments Act did not bar the winding-up petition, because cheque-dishonour prosecution is distinct from debt-recovery proceedings and is not an alternative to company-law relief. The petition was therefore maintainable and the company was liable to be wound up. Case-Laws Companies Law Thu, 04 Jan 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=111449