https://www.taxtmi.com/article/detailed?id=369 An order to wind up for inability to pay debts requires a debt and the company's inability to pay it; courts exercise discretion, treating a company as unable to pay where a creditor has served a proper demand and the company neglects it, where execution on a decree is returned unsatisfied, or where inability is otherwise proved, and must consider contingent and prospective liabilities. Bona fide disputed debts and substantial defences will bar winding up, while undisputed debts or bad faith defences may justify conditional or absolute winding up orders. en-us Sun, 17 May 2009 00:00:00 +0530 Thu, 10 Dec 2009 19:17:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=369 An order to wind up for inability to pay debts requires a debt and the company's inability to pay it; courts exercise discretion, treating a company as unable to pay where a creditor has served a proper demand and the company neglects it, where execution on a decree is returned unsatisfied, or where inability is otherwise proved, and must consider contingent and prospective liabilities. Bona fide disputed debts and substantial defences will bar winding up, while undisputed debts or bad faith defences may justify conditional or absolute winding up orders. Articles Corporate Laws / IBC / SEBI Sun, 17 May 2009 00:00:00 +0530 https://www.taxtmi.com/article/detailed?id=369