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TMI Blog2014 (2) TMI 924X X X X Extracts X X X X X X X X Extracts X X X X ..... y would issue a debit note to enable the other party to pass a corresponding entry in its books. Similarly a credit note is issued if the account of the other party is credited. Both credit notes and debit notes are primary vouchers representing entries in the books of accounts. A unilateral issue of debit note would, obviously, not by itself extinguish a debt. However, a debit note would indicate that the party issuing the debit note has debited the account of the other party in its books. The debit note issued in the present case represents a claim that had been made by the respondent on account of alleged defective goods. It is not disputed that it is a contemporaneous document, which had been issued much prior to the filing of the prese ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y were in respect of the goods that were delivered to the respondent. However, the respondent disputes that any amount is payable to the petitioner as it is contended that the dyes supplied by the petitioner were defective because of using the said dyes, the respondent was mulcted with a claim from one of its customers which was finally settled for a sum of Rs. 6,00,000/-. The respondent contends that the dye known as Lumi Red B and Lumi Red G which was received from the petitioner was used by the respondent for a specific job work done by the respondent for one its customer -M/s Shivalik Prints Ltd., Faridabad. It is alleged that the yarn, which was dyed by the respondent for M/s Shivalik Prints Ltd. Faridabad by using the dyes Lumi R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k was raised by M/s Shivalik Prints Ltd. (stated to be one of the customers of the respondent) and the same had been settled by the respondent for a sum of Rs. 6,00,000/-. 5. The aforesaid facts clearly indicate that the debt claimed by the petitioner is not an admitted debt but is stoutly disputed by the respondent. It is settled law that the proceedings under Section 433 are not proceedings for recovery of amounts due or claimed by a creditor. Proceedings for winding up of the company are premised on the inability of a company to pay its admitted debts. These proceedings cannot be converted to proceedings for resolution of contentious issues and recourse to such proceedings under Section 433 of the Act cannot be taken either to adjudica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and not illusory. The petitioner has not been able to controvert that a claim by the customer of the respondent had been made on the respondent company. Whether the said claim has been raised on account of poor quality of work done by the respondent or whether the defects were attributable to the goods supplied by the petitioner is clearly a contentious issue which would require trial. In the facts of the case it cannot be concluded that this defence, raised by the respondent, is a sham or a moonshine defence. 7. The learned counsel for the petitioner has also relied on the decision of this court in M/s Grandeur Collection Vs Shahi Fashions Pvt. Ltd: Company Petition No. 475/2011 decided on 3rd September, 2013 for the purposes of explaini ..... X X X X Extracts X X X X X X X X Extracts X X X X
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