Law:

Section:

(a) Companies Ordinance (XLVII of 1984)--- ----S. 316---Stay of suit on winding up order---Where suit had already been filed by or against the company, such suit would be stayed on passing of winding up order. Messrs Industrial Develoment Bank of Pakistan v. Messrs Trade and Industries Publications Limited 1989 MLD 374 ref. (b) Companies Ordinance (XLVII of 1984)--- ----S. 306---Winding up of company---Failure of company to pay its debts--­Mere fact that company owned certain properties or fixed assets was not of any consequence while considering the question as to whether or not company was unable to pay its debts---What was to be seen was as to whether company was in a position to meet its current obligations and liabilities---Where, despite the notices served upon the company, it failed to discharge its liabilities and decree passed by the Banking Court had also remained unsatisfied; presumption would arise under S.306, Companies Ordinance, 1984 that company was unable to pay its debts---Order of winding up of company was passed in circumstances. The mere fact that the company owned certain properties or fixed assets was not of any consequence while considering the question as to whether or not the company was unable to pay its debts: On the other hand what was to be seen was as to whether the company was in a position to meet its current obligations and liabilities. In the present case, despite the notice served upon the company it failed to discharge its liabilities and as such a presumption under section 306 of the Companies Ordinance, 1984 arose that the company was unable to pay its debts. Furthermore, the decree passed by the Banking Court had also remained unsatisfied. The company which had failed to discharge its liability within the statutory period, shall be presumed to be unable to pay its debts. Messrs Sindh Technical Industries Ltd. v. Messrs Investment .Corporation of Pakistan 1998 SCMR 1533 ref. ORDER This is an application under section 305/306 of the Companies Ordinance, 1984 seeking compulsory winding up of Hamaliya Textile Mills (Pvt.) Limited respondent herein on the ground of latter's inability to pay its debts. 2. According to the facts…

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