What are the Circumstances in which company may be wound up by Tribunal?
Tribunal is any person or authority to judge or also adjudicate on the disputes or also determining the claims. NCLT covers matters relating to companies Act 2013. The Central Government has also constituted National Company Law Tribunal (NCLT) under section 408 of the Companies Act, 2013 (18 of 2013) w.e.f. 01st June 2016. The president of NCLT is SHRI MAHESH MITTAL KUMAR
The Tribunal can order for winding up of company if:
1. the company is not able to pay off its debts;
2. company does not act in the interest of the sovereignty and also integrity of India, the security of the State, friendly relations with foreign States, public order, decency or morality;
3. the company resolves it by order of tribunal;
4. it also has ordered the winding up of the company under Chapter XIX;
5. it thinks that company is carrying on an fraudulent or unlawful business;
6. company has connection with any unlawful business;
7. the management of company is guilty of fraud, misconduct etc;
8. company had defaulted in filing annual returns and also financial statements immediately preceding five consecutive financial years to registrar;
9. it thinks just and equitable.
A company can not pay its debts if:
1. a company owes amounts exceeding one lakh rupees to the creditor of the company. Then the creditor can also send a demand on the registered office of the company demanding the sum of amount. Payable within 21 days of receipt of such demand. If the company is unable to repay such debt then company is deemed unable to pay its debt. Hence, To provide adequate security or re-structure or compound the debt to the reasonable satisfaction of the creditor;
2. any court in favour of a creditor of the company returns unsatisfied;
3. the company can not pay its debts according to tribunal. The Tribunal shall take into account the contingent and prospective liabilities of the company.