The question (15 marks)
A creditor whose debt a company has not paid instructs you to file a petition to wind up the company for its inability to pay debts. Advise him on the correct proceeding, explaining the grounds on which a company may now be wound up by the Tribunal and who may petition, and set out what an application to initiate the corporate insolvency resolution process must contain. (15 marks)
MU Module III, 3.2 and 3.5; pack ch. 03, winding up after the Eleventh Schedule and the insolvency application.
Plan your answer on paper before you look at the authorities — issue first, then the rule, then apply it to these facts.
It tests Unit 3 · LLP, Company Notices and Insolvency of Drafting, Pleading and Conveyancing – II.
Authorities you will need
- Companies Act 2013, section 2(94A) and section 270
- Companies Act 2013, section 272 as substituted, including sub-sections (2)
- Companies Act 2013, section 273
- Insolvency and Bankruptcy Code 2016, sections 3(12), 4, 5, 6 and 60(1)
- Insolvency and Bankruptcy Code 2016, sections 7, 8, 9, 10, 11, 12 and 238A
- Seth Mohan Lal v Grain Chambers Ltd
How an answer is marked
A full-marks answer names the issue in one line, states the rule with its section, cites the authority, applies it to these facts and concludes — in that order. The app's model answer for this question is written in exactly that shape, with a checklist to mark your own attempt against.