TaxTMI 
TaxTMI 
1971 (9) TMI 89
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....t Dunang, the petitioner, has filed this petition for winding up of Dhootpapeshwar Sales Corporation Private Ltd. The ground on which the winding-up petition is presented is that the company is unable to pay its debts and it is otherwise just and equitable that the company should be wound up. The petitioner had filed a suit being Suit No. 339 of 1970 in the city civil court at Bombay against th....
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....te with the result that upon default of payment of two instalments the whole amount then due under the decree became payable. By the petitioner's attorney's notice dated November 23,1970, the petitioner gave notice under section 434 of the Companies Act, 1956, calling upon the company to pay the amount due as stated in the said notice. It was stated in the said notice that if the requisition conta....
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....any has for three weeks thereafter neglected to pay the sum, or to secure or compound for it to the reasonable satisfaction of the creditor, the company shall be deemed to be unable to pay its debts. There is no controversy between the parties that a statutory notice as required under the above provisions was served upon the company by registered post and within three weeks of the receipt thereof,....
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.... tune of about Rs. 7 lakhs and there are no assets available to meet those liabilities. It is now well settled that a company is commercially insolvent if it is unable to pay and discharge its liabilities as they arise in the ordinary course of business. In the present case, the company is clearly commercially insolvent and this is a fit case where an order of winding-up should be passed against t....