Principle

COMPANY LAW — Winding-Up — Inability to Pay Debts — Distinction Between Winding-Up Petition and Ordinary Debt Recovery Action

Area of law
COMPANY LAW
Court
Supreme Court

Winding-up is distinct from debt recovery. The principle applies to company law. The debt must be admitted or certain. The rule prevents use of winding-up as a debt collection tool. The court will require strict proof. The principle is well-established.

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