Debtor’s Unwillingness to Pay Debts without Proof of his Inability to Pay. We answer in this post- (a) Can Proceedings Commence in such a situation? and (b) Would a cessation of payment by the debtor need to be proved?
A Admitted Debt u/s 433(3) of Companies Act, 1956 Alternative Remedy to be initiated before invoking just and equitable clause u/s 433 (f) B Bona fide dispute C Commercial Insolvency Creditor’s Objection to Winding Up Composite petitions under Sections 397, 398 and 433(f) D Dissolution of Partnership and Deadlock as grounds for Winding Up under Section…
GREEV vs. KETTLE Key Words: mutual mistake in guarantee, estoppel, rectification Facts: Defendant Company (S), in consideration of Plaintiff Company’s (C) giving credit to principle debtor (D), guaranteed the payment of debt, which was stated in deed to be secured by ‘validly issued shares in Company’. Though both S and C believed this fact to…
Charan Singh vs Security Finance (P) Ltd. Citation(s): AIR 1988 Delhi 130 Full Text here Facts: The creditor after obtaining the money decree against the two principal debtors (PDs) and the Surety, holding them liable severally as well as jointly, decided to pursue his cause of action against the Surety, after he arrived at an agreement…
Aziz Ahmad vs. Sher Ali and Others Citation: AIR 1956 All 8 Full Text here Issue: Whether a surety is discharged when the creditor allows the execution of his decree against the ‘principal debtor to be barred by limitation. Position in England: In England, a failure to sue the principal debtor until recovery is barred by…