Q.State any four grounds on which a company may be wound up by the Tribunal under Section 271 of the Companies Act, 2013.

Section 271 lists specific grounds, including a company's own special resolution, conduct against the State/public order, fraudulent formation or management, and prolonged default in statutory filings.

Section 271 of the Companies Act, 2013 sets out the specific grounds on which the National Company Law Tribunal may order the compulsory winding up of a company. A student asked for "any four" may pick any four of the following, which together make up the full list:

1. Special resolution of the company. Where the company itself, by a special resolution passed by its members, has resolved that it should be wound up by the Tribunal.
2. Conduct against the State/public interest. Where the company has acted against the interests of the sovereignty and integrity of India, the security of the State, friendly relations with foreign States, public order, decency, or morality.
3. Fraudulent conduct. Where, on an application by the Registrar or a person authorised by the Central Government, the Tribunal is of the opinion that the company's affairs have been conducted in a fraudulent manner, or that the company was formed for a fraudulent or unlawful purpose, or that the persons concerned in its formation or management have been guilty of fraud, misfeasance, or misconduct, and it is proper that the company be wound up.
4. Default in statutory filings. Where the company has made a default in filing its financial statements or annual returns with the Registrar for five consecutive financial years.
5. Just and equitable ground. Where the Tribunal is of the opinion that it is just and equitable that the company should be wound up — a flexible, residual ground used, for instance, where there is a complete breakdown of mutual trust between the persons managing the company, or the very purpose for which the company was formed can no longer be achieved. …

Listing "inability to pay debts" as a Section 271 ground is a common but outdated answer — under current law that situation is addressed through the IBC's ins …