Law: Companies Ordinance, 1984

Section: 305(e),306(1)(a)

(a) Companies Ordinance (XLVII of 1984) [since repealed]--- ----Ss. 305(e), 306(1)(a)---Winding up of company---Default in payment of debt---Presumption after serving of notice---Legislature has, vested the creditor with an advantage, that when the creditor has served upon a company, a statutory notice under S. 306(1)(a) to pay its debt, and the company has neglected to pay the debt, within the stipulated thirty days, a presumption by a legal fiction is created in favour of the creditor, that the company is unable to pay its debt due to the creditor. (b) Companies Ordinance (XLVII of 1984) [since repealed]--- ----S. 306(1)(a)---Winding up of company---Default in payment of debt---Phrase neglect to pay used in section 306(1)(a) of the Companies Ordinance, 1984 (the Ordinance)---Words neglect to pay expressed in S. 306(1)(a) of the Ordinance, refers to a refusal of the company to pay without any reasonable cause---If the company raises a bona fide dispute, as to its liability to pay the amount claimed by the creditor, then in that case, there can be no neglect to pay by the company, within the meaning of S. 306(1)(a). In Re: London and Paris Banking Corporation (1874) LR 19 Eq 444,445; Palmer on Company Precedents (17th Edition, Part: II) and Messrs Platinum Insurance Company Limited v. Daewoo Corporation PLD 1999 SC 1 ref. (c) Companies Ordinance (XLVII of 1984) [since repealed]--- ----Ss. 305(e), 306(1)(a), 309---Winding up of company---Default in payment of debt---Principles pertaining to winding up of a company that is unable to pay its debt, and the presumption of law deeming the company of being unable to pay its debt in such commercial state, as provided in S. 305(e), S. 306(1)(a) of the Companies Ordinance, 1984 stated. Following are some of the general principles pertaining to winding up of company that is unable to pay its debt, and the presumption of law deeming the company of being unable to pay its debt in such commercial state, as provided in section 305(e) and section 306(1)(a) of the Companies Ordinance, 1984 (the Ordinance) respectively: (i) That if a debtor company is merely unwilling to pay its debts but otherwise is commercially solvent, then…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492