JUDGMENT

(Winding Up Without A Judgment Debt)

Kenneth St James J:

Prelusion

[1] This winding up Petition is on the grounds that the Respondent (R) is "unable to pay its debts" under s 465(1)(e) of the Companies Act 2016 ( CA ) and that "it is just and equitable" for R to be wound up under s 465(1)(h) of the .

[2] But this winding up Petition is not premised on a judgment debt. In other words, the Petitioner (P) is not petitioning to wind up R for R's inability to pay a judgment debt (which is a prima facie indisputable debt). This means that P has to demonstrate that even without a judgment in P's favour against R, R is nevertheless unable to pay its debts, particularly to P.

[3] Should this winding up Petition be allowed?

The Law

[4] P need not have a judgment in hand against R, to present a winding up Petition against R — Anjakan Rezeki Sdn Bhd v. UI Lead Sdn Bhd ( CA ).

[5] But before the Court will allow the Petition, there must be no bona fide dispute of the debt on substantial grounds. If R disputes the debt, R cannot merely assert that they "dispute the debt". The dispute must be genuine and substantive. R must demonstrate that the dispute against the debt is bona fide by