A court may grant an extension of time to file a defense where merits exist, and delay is justifiable and reasonable.

Before this court there are two applications to be heard. Enclosure 3 is an application by the plaintiff under O 19 r 7(1) of the Rules of the High Court 1980 ('the RHC') for an order that default judgment be entered against the defendant for failure to file their statement of defence.

Enclosure 8 is an application by the defendant for leave to file their memorandum of appearance and statement of defence out of time. They also apply for an extension of time to file the affidavit in reply to the plaintiff's application at encl 3. Background facts

The plaintiff claims that as a member — of the defendant company he had invested a sum of RM10,000 towards its capital. The defendant company carries its business under the style of Kulim Intensive Driving Centre Sdn Bhd and has its registered office at No 507, Jalan Cengai Hijau, Taman Bersatu, 09000 Kulim, Kedah. The defendant company's main activity is to train and give driving lessons to motor vehicle drivers in preparation for their applications for valid driving licences from the Road Transport Department. It is also registered with the Road Transport Department, for that purpose.

The defendant company started its business in 1994 and since then, according to the plaintiff, claims that it has, never prepared its 'loss and profit' account and table it before its members. Neither had the defendant company filed the same with the Registrar of Companies.

It is further alleged by the plaintiff that the defendant company had made huge profits prior to its cessation in 1996. The said profits, according to him was deposited in its current account with the Public Bank Bhd at Kulim.

Further, the plaintiff claims that the managing director and its other directors had intended to wind up the defendant company and transfer its assets and profits to a new company to be formed by them. The plaintiff believes that he will have no place in the new company.

In order to safeguard his interest in the defendant company and for fear that the profits would be mismanaged by the directors, the plaintiff had repeatedly sent written notices to the defendant company requesting it to submit its 'loss and profit' accounts and financial statements to its Annual General Meeting. The defendant company had completely ignored the plaintiff's request. The plaintiff, being disgusted with the defendant company's attitude, had filed this suit in court claiming amongst others the following order:

(i) suatu perintah injunksi melarang defendan melalui pekerja, agen, ahli-ahli lembaga pengarah atau lain-lain pihak daripada berurusan dengan akaun syarikat defendan di Public Bank, Cawangan Kulim, Kedah;

(ii) suatu perintah injunksi melarang syarikat defendan daripada digulung;

(iii) suatu perintah bahawa syarikat defendan menyediakan penyata kewangan bagi tahun berakhir September 1995 dan September 1996 dan membentangkannya di mesyuarat agung syarikat defendan dan memfailkannya dengan Pendaftar Syarikat Malaysia.

The writ and the statement of claim was served on the defendant company by way of registered post on 28 November 1997. The defendant company, however did not file its appearance and statement of defence. Thereafter, the plaintiff filed a notice of motion, ie encl 3, to enter default judgment against the defendant company, in accordance with O 19 r 7(1) of the RHC. Enclosure 3 was served on the defendant company.

Soon after the receipt of encl 3, the defendant company on 14 July 1998, filed an application by way of summons in chambers ie encl 8 for leave and extension of time to file their appearance, statement of defence and affidavit in reply to the plaintiff's application at encl 3. Hence the two applications before this court.

Findings of court

For the sake of justice