-: 1 :- IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION COMPANY PETITION NO.55 OF 2008 In the matter of M/s.Areeb Rolling Mills Pvt. Ltd. M/s.M.S. Ship Breaking Pvt. Ltd. : Petitioner ... Mr.Cyrus Bharuch with Ms Namrata Jayakar i/b. M/s.Jayakars for the petitioner. Mr.P.M.Pradhan for the respondent. ... CORAM : S.A. BOBDE, J. DATE : SEPTEMBER 11, 2008. P.C. 1. This is a petition for winding up of the respondent-company. The petitioner’s claim is in respect of goods sold and supplied to the respondent, being various quantities of Pi/Steel/Ci Scrap Fines and Chips of M.S. The petitioner contended that the respondent issued eight cheques for payment, but the cheques dishonoured with the endorsement "Exceeds arrangements". They, therefore, made a claim for Rs.26,93,575/- together with interest at 24% per annum. 2. Mr.Pradhan, the learned counsel for the respondent, strongly denies the liability. He relies on three letters -: 2 :- written by the company dated 28.4.2007, 20.4.2007 and 22.6.2007 pointing out the defective material supplied by the petitioner which is said to have resulted in a dangerous blast at their furnace. The learned counsel for the petitioner submitted that these letters were never received. However, the acknowledgement of the courier suggests that the letters were received by the petitioner. It is made clear that this finding is recorded only for the purpose of this Company Petition and the petitioner would be free to challenge the veracity of the receipts in appropriate proceedings when an occasion arises. From the letters, it appears that the respondent-company stopped payment of cheques due to the alleged inferior quality of material. Whatever be the merits of stopping such payment, it shows that there has been a dispute in respect of the supply of goods. 3. Moreover, it is an admitted position that the petitioner has filed a summary suit for recovery of the amount in question. Having regard to the overall circumstances, there appears to be a bona fide dispute which is pending before decision in the summary suit. In the circumstances the proceedings for winding up are not the proper remedy. 4. Accordingly, this Company Petition for winding up is dismissed. -: 3 :- S.A. BOBDE, J.