Law: Companies Ordinance, 1984

Section: 305,305(e)

(a) Companies Ordinance (XLVII of 1984)--S. 305(e) Company unwilling to pay its debt Remedy of creditor Remedy of winding up petition would not be available to a creditor, where debtor company, though commercially solvent, was merely unwilling to pay its debt. Messrs Platinum Insurance Company Limited, Karachi v. Daewoo Corporation, Sheikhupura PLD 1999 SC 1 and Messrs Sindh Glass Industries Limited, Karachi v. Messrs National Development Finance Corporation, Karachi and 2 others 1996 SCMR 645 ref. (b) Companies Ordinance (XLVII of 1984) S.305(e) Winding up petition on ground of failure to pay debt Maintainability Where liability to pay debt was not disputed or where after having been called upon, the debtor company failed to pay the debt, petition of winding up would become maintainable. (c) Companies Ordinance (XLVII of 1984) S.305(e) Winding up petition on ground of default in payment of debt Maintainability Availability of alternate remedy for recovery of debt or the debt being barred by limitation does not affect the maintainability of winding up petition on ground of default in payment of debt. Habib Bank Limited v. Hamza Board Mills and others PLD 1996 Lah. 633 and National Bank of Pakistan v. The Punjab National Silk Mills Limited and others P L D 1969 lah. 104 ref. (d) Companies Ordinance (XLVII of 1984) S.305(e) Winding up petition on ground of default in payment of debt Maintainability Petitioner, in winding up petition had admitted that due to some defects in the construction work carried out by it, the Company did not pay remaining amount of contract, therefore, debt claimed could not be held as contemplated under S 305(e) of Companies Ordinance, 1984, to become a valid reason for winding up petition Petitioner had brought this petition just to coerce a payment against a company, which at least, since the time of filing of such petition, was earning substantial profits Winding up proceedings being summary in nature could riot be granted to force a small payment, which was seriously disputed Winding up petition was dismissed as petitioner had no case at all. Pakistan Industrial Credit and Investment Corporation Limited 4. Messrs Indus Steel Pipe…

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