Nature of grievance

The law confers a right upon creditor to move for the winding up of a Company if the Company without having just reasons, but refuses to pay the dues of the petitioning creditor. Winding up proceedings are against the Companies who are incorporated under the Companies Act, 1956 or Companies Act, 2013, wherein under certain circumstances set out under the law, the Company may be told to wind up its operations; and one of the grounds on which the Company may be wound up is, when it is unable to its debts. Before filing a Winding up Petition, the Creditor is required to give Notice u/s 434 of the Companies Act, 1956, to the Company, and where the Company neglects to pay the sum, or to secure or compound for it to the reasonable satisfaction of the creditor, the aggrieved person may file the Winding up Petition in the competent Court of jurisdiction