Mahadev Shankar J:

This is a petition by United Asian Bank Berhad (hereafter referred to as `the bank') to wind-up Hong Huat Realty (M) Sdn. Bhd. (`the company').

The company was incorporated on 14 February 1972 with a paid up capital of RM560,002. In the course of its business activities it opened a current account No. 05-059 with the bank. Through that account the company obtained overdraft facilities. For these facilities the company offered collateral by way of a charge for RM400,000 on the land comprised in EMR 185 for Lot 1536 and EMR 187 for Lot 1538 in the Mukim of Senai/Kulai valued at the time at about RM500,000. There was also a separate charge for RM100,000 on the land comprised in EMR 13 Lot 52 in the Mukim of Kahang valued at about RM293,000. There was also a deposit of title deed under Johore Government Grant No. 9279 Lot 2799 for RM40,000. The bank also held a personal guarantee from each of the company's directors Dato Yap Sing Hock, Yap Seng Chang and A. Hamid bin Mohamed Thair for RM400,000. And the bank held a fixed deposit from the company of RM1.2 million.

In the usual course of its business, the bank sent monthly statements to the company. By Februa