[1] The appellant (the respondent in the court below) was incorporated on 7 November 1995 and has an authorised capital of RM500,000 divided into 500,000 shares of RM1 each. Its paid-up capital is RM250,000. The appellant was indebted to the respondent, a finance company (the petitioner in the court below) in the sum of RM3,908,860.31 as at 26 January 1998.

[2] On 24 June 1998 the respondent’s solicitors served on the appellant a notice pursuant to s 218 of the Companies Act 1965 by leaving it at its registered office. Under the said notice, the appellant was required to pay to the respondent the said sum of RM3,908,860.31 within 21 days from the date of service. The appellant did not make any payment. On 26 November 1998. The respondent presented to the court a petition to wind up the appellant.

[3] In the petition, the respondent contended that the appellant made several admissions and acknowledgment of the correctness of the outstanding debt it owed to the respondent and undertook to make all payments due. The appellant had also by letters to the respondent dated 24 January 1998 and 6 March 1998 requested for time to se