Ian HC Chin J:

Introduction

On 17 January 1998 the Government of Sarawak ("the applicant") took out this application for security for costs under s. 13(6)(a) of the Arbitration Act 1952 , and under s. 351(1) of the Companies Act 1965 , to be furnished by Sami Mousawi-Utama Sdn Bhd ("the respondent"), which is under liquidation, in relation to a pending arbitration ("arbitration").

Facts Of Case

The respondent is in the arbitration proceeding claiming against the applicant a sum of RM17 million under a consultancy service agreement made on 26 October 1984 ("the agreement"). The claim asserted by the respondent is for "outstanding professional fees for the design of Phase II, Phase III and Islamic details and decoration for Phases II and III of Mesjid Negeri Sarawak and Islamic Cultural Centre at Petra Jaya Kuching". The services that were provided upon which the respondent based its claim were elaborated by the respondent through an affidavit of its liquidator Ng Pyak Yeow, affirmed on 25 March 1998, in these terms: "the consultancy services to be provided by the [respondent] outstanding for the whole project and not just for the phases that are carried out. Appendix A and