Vibhu Bakhru, J. (Oral)

1. The petitioner has filed the present petition under Section 433 (e) of the Companies Act, 1956 (hereinafter referred to as the ‘Act’) alleging that the respondent has been unable to pay its admitted dues to the petitioner. The respondent contends that no amount is payable to the petitioner and on the contrary certain amounts are recoverable from the petitioner on account of defective goods supplied by the petitioner.

2. The only controversy that needs to be addressed in the present case is whether the defence raised by the respondent is bonafide or a sham defence.

3. Briefly stated, the facts are as under:-

3.1 The petitioner is in the business of manufacturing, trading and distribution of synthetic leather (Rexine). The said material is used by the respondent in manufacturing shoes. The petitioner has been supplying the said goods to the respondent since over two years and the business relations amongst the parties are stated to have been cordial. The only complaint that the petitioner had was regarding minor delays in payment of the invoices. However, there is no dispute that the payments, for the goods delivered in the past, were effected.

3.2 The