V. Watumal (Private) Limited vs. LOLC Finance PLC – SC APPEAL 105/2020-2024

The case between V. Watumal (Private) Limited and LOLC Finance PLC, with LOLC Factors Limited also as respondent, involved scrutiny of the winding up petition filed under the Companies Act. The court addressed issues concerning the statutory requirements under section 270(d) and the necessity to prove inability to pay debts as delineated in section 271, along with questions regarding the applicability of sections 319 and 320 in a Court-assisted winding up procedure. It was determined that the petitioner’s evidence, particularly the auditor’s report and the special resolution, did not sufficiently establish the Company’s inability to pay its debts. The ruling reinforced that the mandatory requirements of sections 319 and 320 pertain exclusively to voluntary winding up, resulting in the dism