Law:

Section:

(a) Companies Ordinance (XLVII of 1984)-------S. 306---Statutory notice of demand---Failure to pay debt---Commercial insolvency---Presumption---In the event of failure to pay debt in accordance with statutory notice of demand under S.306 of Companies Ordinance, 1984, insolvency was to be presumed through it could also be proved in other ways. (b) Companies Ordinance (XLVII of 1984)--- ----Ss. 305, 306 & 309---Winding up of company---Failure to pay debt---Commercial insolvency---Company ceased to be a going concern and it was cripplingly indebted to a number of creditors including petitioners---Company had become "commercially insolvent" and was unable to pay its debts and its paid up capital had been completely wiped out---Even the remotest possibility of revival of the company did not exist and its further existence or continuance would only multiply its liabilities to detriment of its creditors and shareholders---Effect---Winding-up of the company had become inevitable and no objection was received from any quarter and statutory presumption as to commercial insolvency of the company was created---High Court appointed official assignee as Official Liquidator, who would take over complete charge and control of the affairs and assets of the company---High Court directed that official liquidator would perform all such duties and functions and exercise all such powers as were required under the law---Mills of the company were located in different districts in other province, therefore, official liquidator was authorized to seek assistance of such persons at those places as he might deem fit and proper in the best interest of creditors and shareholders and for expeditious winding-up of the company---Petition was allowed in circumstances. Hala Spinning Mills Ltd. v. International Finance Corporation and another 2002 SCMR 450 and Messrs Ali Woolen Mills v. Industrial Development Bank of Pakistan and 3 others PLD 1990 SC 762 ref. ORDER NADEEM AKHTAR, J.---The petitioner has filed this petition under sections 305 and 309 of the Companies Ordinance, 1984, ('the Ordinance') against the respondent Gulistan Textile Mills Limited ('the Company'), which is a public…

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