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Issues: Whether the company petition for recovery of the claimed amount should be dismissed on the basis of the disputed invoices and partial admissions, or admitted subject to a deposit and consequential relief.
Analysis: The petition raised a claim for payment for goods supplied under a purchase order, while the respondent disputed liability for one invoice, alleged deductions for returned and damaged material, and asserted partial payment. The Court found prima facie material showing receipt of goods under the disputed invoice and rejected the contention that the goods were not received. It also accepted that there was a bona fide dispute regarding the amounts relating to damaged and returned goods, and noted that one payment had been made. On the respondent's own admission, a liability of Rs. 71,175 stood acknowledged. In these circumstances, the petition was not straightaway dismissed but was directed to be met by a substantial deposit, with limited withdrawal permitted and the balance relegated to a civil suit.
Conclusion: The petition was disposed of by directing the company to deposit Rs. 3,25,000, permitting withdrawal of Rs. 71,175 by the petitioners, and providing that the balance dispute be pursued in a suit.