a story about debt recovery

If Mr.X would like to file for a claim in the local court to recover the debt of about $40000 owned by a business. Will X have any chance to win?
Please find the brief information of X's case described bellow:
-X is in a partnership business called A&B with B.
-A&B supplied fashion garments to business C.
-A&B delivered 5 orders (5 invoices) to C.
-C has send cheque to pay 1# invoice and deposited into A&B account.
-The partnership was finished by oral agreement due to unlawful use of resources of the business by B.
-X informed C by writing not to present any remaining cheques to B, and should deposit directly to A&B account or send to the lawyer who will represent them for the disolussion of partnership.
-B secretly setup another business A&B fashion. And he kept supplying to C.
-C gave the other 4 cheques to B without informing X.
-X chased for outstanding payment for A&B.
-C claimed he has paid all invoices by giving the cheques to .
-B declared by writing that he got the cheques but hasn't deposited them.
-C provided copies of bank statement showing that 4 cheques were already cleared from his account.
-But the money were not deposited in A&B account.
-Therefor, A&B is not paid by.
-So X file for debt recovery from C.
Who lies you can gusee? Where are the money now? 100% at A&B fashion owned by B. Is this fraud by changing the payee's name?
C did not want to report it to the bank and the police. There must be something happened between C and B. X don't know.
Mr.X want to recover the money from C not B, because:
-this is a clear case that A&B is not paid by c. A trace of bank clearance will approve that.
-X will not get anything if he try to recover money from B, he must transfer the money to her family member's account, or declare bankcrupcy.
-if the money is recovered from C and deposited to A&B account (joint account, no body can withdraw money from this account without both signature), then at least X can claim half of it by disolussion of partnership.
Please advise what is the best way to recover the money.