JUDGMENT

Atan Mustaffa Yussof Ahmad J:

Introduction

[1] This judgment concerns an originating summons filed by a company seeking a declaration that a statutory demand issued against it under s 466(1)(a) of the Companies Act 2016 (" CA 2016") is invalid, and for a Fortuna injunction to restrain the presentation of a winding up petition pursuant to that demand. The dispute centres on a long-standing business arrangement between the parties for the consignment and retail of apparel. The Plaintiff contends that the debt claimed in the statutory demand is premised on a letter of intent that was signed by its officer without authority and as part of a conspiracy with the Defendant's director to defraud the Plaintiff. Conversely, the Defendant argues that the debt is undisputed as the Plaintiff had performed the contract and settled invoices without protest for four years, and is therefore estopped from challenging the liability now. The key issues that arise are whether there is a bona fide dispute over the debt on substantial grounds, whether the Plaintiff is deemed unable to pay its debts by reason of its failure to comply with the statutory demand thereby giving rise to a presumption