Under Section 271(2) of the Companies Act, 2013, as originally enacted, a company shall be deemed to be…
Under Section 271(2) of the Companies Act, 2013 as originally enacted, a company is deemed unable to pay its debts "if the company has failed to pay the sum within 21 days…
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Under Section 271(2) of the Companies Act, 2013, as originally enacted, a company shall be deemed to be unable to pay its debts:
Answer and explanation
Correct answer D
Under Section 271(2) of the Companies Act, 2013 as originally enacted, a company is deemed unable to pay its debts "if the company has failed to pay the sum within 21 days after the receipt of such demand", "if any execution process issued on a decree in favour of a creditor is returned unsatisfied", or "if it is proved to the satisfaction of the Tribunal that the company is unable to pay its debts"; hence "All of the given options are correct". This ground of winding up was removed from Section 271 in 2016, when insolvency was moved to the Insolvency and Bankruptcy Code, 2016.
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