2000 (5) TMI 966

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.... are that the petitioner was importing heavy melting scrap from Mauritius. It was to be supplied by G. Runghen & Co. The consignment was shipped and imported to India. The respondent-company entered into three High Seas Sale Contracts within the petitioner-company on 10-11-1996, for purchase of heavy melting scrap. The respondent-company was to pay for the custom duty, fine, penalty, port, wharfage, demmurage, transportation and other incidental charges. The respondent-company got cleared the above consignment and had taken all delivery of the consignment of heavy melting scrap. It utilised the raw material and availed MODVAT under rule 57 of the Central Excise Rules. 3. It is claimed that the respondent-company is liable to pay a sum of....

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....ros. who are the main persons for supply of the same. It was stated that the respondent is not aware of the transaction between the petitioner and Nanda Bros. 7. Principle of law in this regard is well settled. The Supreme Court in the case of Madhusudan Gordhandas & Co. v. Madhu Woollen Industries (P.) Ltd. AIR 1971 SC 2600 categorically held that petition should only be admitted, if the defence is not likely to succeed, the Supreme Court held- "Where the debt is undisputed, the court will not act upon a defence that the company has the ability to pay the debt, but the company chooses not to pay that particular debt (See Re, A company 94 St. 369). Where however there is no doubt that the company owes the creditor a debt entitling him....