Section 181:

181. Court may set aside statutory demand (1) The Court may, on the application of the company, set aside a statutory demand. (2) The application shall be made, and served on the creditor, within 14 days of the date of service of the demand. (3) No extension of time may be given for making or serving an application to have a statutory demand set aside, but, at the hearing of the application, the Court may extend the time for compliance with the statutory demand. (4) The Court may grant an application to set aside a statutory demand where it is satisfied that— (a) there is a substantial dispute whether or not the debt is owing or is due; (b) the company appears to have a counterclaim, set-off or crossdemand and the amount specified in the demand less the amount of the counterclaim, set-off or cross-demand is less than the prescribed amount; or (c) the demand ought to be set aside on other grounds. (5) (a) A statutory demand shall not be set aside by reason only of a defect or irregularity unless the Court considers that substantial injustice would be caused if it were not set aside. (b) In paragraph (a), “defect” includes an immaterial misstatement of the amount due to the creditor and an immaterial misdescription of the debt referred to in the demand. (6) (a) Where, on the hearing of an application under this section, the Court is satisfied that there is a debt due by the company to the creditor that is not the subject of substantial dispute, or is not subject to a counterclaim, set-off or cross-demand, the Court may— (i) order the company to pay the debt within a specified period and that, in default of payment, the creditor may make an application to put the company into liquidation; or [Issue 3] I14 – 106 Revised Laws of Mauritius (ii) dismiss the application and forthwith make an order under section 102 putting the company into liquidation, on the ground that the company is unable to pay its debts as they become due in the ordinary course of business. (b) For the purposes of the hearing of an application to put the company into liquidation pursuant to an order made under subsection (6) (a), the company is presumed to be unable to pay its debts as they become due in the ordinary course of business where it failed to pay the debt within the specified period. (7) An order under this section may be made subject to conditions. Sub-Part III – Receivers and Managers