https://www.taxtmi.com/caselaws?id=200167 Application of the statutory test for inability to pay debts under the Companies Act requires that allegations of nonpayment be supported by bona fide, substantiated materials; where a running business, profit-making balance-sheets, pending recovery proceedings and an interim bank guarantee exist, the materials must be evaluated in context and cannot automatically justify winding up. On appellate review the courts must consider whether relevant materials were ignored and whether a reasoned conclusion was reached. Applying these principles, the statutory condition for admission of the winding-up petition and for publication of citation was not made out on the materials before the courts, and the petition admission and citation direction were set aside while the interim bank guarantee remains valid pending the pending suit. en-us Tue, 29 Oct 2002 00:00:00 +0530 Thu, 22 Mar 2018 17:23:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=200167 Application of the statutory test for inability to pay debts under the Companies Act requires that allegations of nonpayment be supported by bona fide, substantiated materials; where a running business, profit-making balance-sheets, pending recovery proceedings and an interim bank guarantee exist, the materials must be evaluated in context and cannot automatically justify winding up. On appellate review the courts must consider whether relevant materials were ignored and whether a reasoned conclusion was reached. Applying these principles, the statutory condition for admission of the winding-up petition and for publication of citation was not made out on the materials before the courts, and the petition admission and citation direction were set aside while the interim bank guarantee remains valid pending the pending suit. Case-Laws Indian Laws Tue, 29 Oct 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=200167