This conflict resulted in a legal dispute since both parties had a conflicting idea on the method to be used for calculation itself. As per the formula followed by the defendant, Kotak India were entitled to receive 30% of the total paid-up share capital held by the petitioner. However, the formula adopted by the petitioner indicated that the defendant, Kotak India, was only entitled to 10% of the total paid-up share capital held by the petitioner. It was established that until an appropriate decision was arrived at pertaining to the method of calculation, no refund amounts could be claimed or transacted between the two parties and no liability could be claimed. Hence, there is no defined 'debt' or 'default' that the petitioner has made in order to raise a claim that the petitioner company is in a position where it is unable to pay the due amount.