2018 (8) TMI 506

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....titioner, as per the appointment letter, was Rs. 75,000/- per month i.e. Rs. 9 lakhs per annum. On 06.01.2013, the Company asked the petitioner to accept a pay cut from Rs. 75,000/- to Rs. 50,000/- per month from January, 2013. Looking to the delicate financial condition of the Company, the petitioner accepted the same. However, subsequently, the petitioner intended to resign from the Company for better prospects and as such, sent his resignation on 03.04.2013, requesting the Company to restrict the notice period to one month, instead of two months. However, the Company did not accede to the same. 3. Be that as it may, the petitioner left the services of the Company w.e.f. 02.05.2013. The petitioner as per the direction of the Company sent....

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.... Section 433(e) of the Act, in order to submit that the inability of the Company to pay its debts, is one of the grounds for directing winding up of the Company. The learned Counsel has placed reliance on the provisions of Section 434 of the Act. Section 434 of the Act provides for the contingencies, when the Company is deemed to be unable to pay its debts. Section 434 of the Act reads thus:   "434. Company when deemed unable to pay its debts. (1) A company shall be deemed to be unable to pay its debts- (a) if a creditor, by assignment or otherwise, to whom the company is indebted in a sum exceeding one lakh rupees then due, has served on the company, by causing it to be delivered at its registered office, by registered post or ot....

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.... Company, in as much as, the liability exceeds the assets. It is submitted that it is otherwise not in public interest that the Company continues its operations. 10. Be that as it may, having regard to the fact that the Company, inspite of the notice, has neglected to pay the outstanding dues or to secure or compound for it to the reasonable satisfaction of the petitioner, within the meaning of Section 434 (1) (a) of the Act, the Company would be "deemed to be unable to pay its debts". In that view of the matter, the Company is liable to be wound up under Section 433 (e) of the Act.   11. It appears that in pursuance of the advertisement issued, the Canara Bank, Udupi Town Branch, Udupi, Karnataka, had filed Company Application No. 3....