Mahesh is a creditor of an unlimited company. The company was wound-up. Mahesh, therefore, wants to sue the members of the company to recover the dues. Advise Mahesh regarding the remedy available to him.

In accordance with the Section 2(92) of the Companies Act, 2013, "Unlimited Company" means a company not having any limit on the liability of its members. Thus, the maximum liability of the member of such a company, in the event of its being wound up, might stretch up to the full extent of their assets to meet the obligations of the company by contributing to its assets. However, the members of an unlimited company are not liable directly to the creditors of the company, as in the case of partners of a firm. The liability of the members is only towards the company and in the event of the company being wound up only the Liquidator can ask the members to contribute to the assets of the company which shall be used in the discharge of the debts of the company. Accordingly, Mr. Mahesh cannot directly sue the members of the company for recovery of his dues. He can file his claim to the Liquidator of the company.