Neglect to pay despite winding up notice, in law is to be deemed to be insolvent

This petition filed by the petitioner company M/s. Shree Balkrishna Commercial Company Limited (hereinafter ‘the petitioner company’) under section 434 of the Companies Act, 1956 (hereinafter ‘the Act of 1956’) seeks winding up of the respondent company M/s. Ask Dairies Private Limited (hereinafter ‘the respondent company’) for reason of its inability to repay the due, outstanding admitted loan amount of Rs. 20 lacs along with interest @ 36% per annum despite a statutory notice under section 434(1)(a) of the Act of 1956. 2. The respondent company having rema...