The petitioner brought this winding-up petition against the respondent pursuant to s 218 of the Companies Act 1965 ('the Act') on the ground that the respondent was unable to pay its debt. The petitioner had obtained judgment against the respondent on 11 January 1990 for RM84,883.54. The respondent was placed under receivership on 23 April 1990. The receivers and managers ('the RM') appointed by the debenture holder on 15 January 1991 opposed this petition. The defendant was a housing developer; and at the date of appointment of the RM, the defendant was involved in the development of a housing project known as 'Taman Wilayah Selayang' ('the project'). The project was the only development project carried out by the defendant. The RM conducted a study of the project and concluded, as stated in para 8 of encl 9 being the affidavit of one of the partners of the RM, inter alia, that:

(a) if completed, the project is expected to generate a surplus of RM10.437m after accounting for construction and related expenses;

(b) to bring the project to completion, additional financing in the sum of approximately RM6.7m is required.

(c) if would take approximately another 21