These winding-up proceedings were first initiated by Haller (Far East) Pte Ltd on 22 November 1986 on the ground that the debtor company, Mechanised Construction Pte Ltd, owed Haller a sum of $64,297.96. The petition of Haller was based on neglect by the company to pay up the sum demanded within three weeks of the issue of the statutory notice. On 17 November 1987, by an order of court, Haller was given leave to withdraw its petition and in its place, Boustead Services Pte Ltd ('Boustead') was granted leave to be substituted as the petitioning creditor. The substituted petition was filed on 22 December 1987. The ground upon which the substituted petitioner sought to rely to wind up the company was that the latter neglected to pay or satisfy a statutory notice of demand dated 20 January 1987 for a sum of $141,036.79.

The sum of $141,036.79 was alleged to be due from the company to Boustead under a sale contract dated 30 June 1985 whereby Boustead agreed to supply, fabricate and install structural steelworks of an estimated total weight of 201 metric tonnes at the rate of $1,490 per tonne, making an estimated total of $299,490. These materials and services were requi