Companies Act, 2013

Section 391

Power of Tribunal to order winding up of company which is unable to pay its debts

⚡ Quick Answer Reference: Section 391 Companies Act

Provision: Section 391 of Companies Act
Act: Companies Act, 2013
Classification: corporate
Jurisdiction: India

Statutory Content

What does Section 391 of Companies Act say?

A company which is unable to pay its debts shall be deemed to be unable to pay its debts within the meaning of this section if it is proved to the satisfaction of the Tribunal that the company is unable to pay its debts as they become due within a period of 6 months from the date of the demand.

Indian StandardSection 391, Companies Act, 2013

Bluebook (21st ed.)Companies Act, 2013, § 391 (India)

Court Pleading StandardSection 391 of the Companies Act, 2013

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Source: Gazette of India (Official Publication)Verify egazette.gov.in ↗

Common Questions about Section 391 Companies Act

What is Section 391 of Companies Act?

Section 391 of the Companies Act, 2013 (Companies Act) defines and regulates "Power of Tribunal to order winding up of company which is unable to pay its debts". The section states: A company which is unable to pay its debts shall be deemed to be unable to pay its debts within the meaning of this section if it is proved to the satisfaction of the Tribunal that...

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