VC George J:

[On encl. (23)]

On 21 December 1984 NKM Development Sdn. Bhd. presented to the Court the petition herein to wind-up Irex Sdn. Bhd. (the Company). The relevant Senior Assistant Registrar apparently was prevailed upon to allot 10 January 1985, an early date indeed, for the hearing of the petition.

The petitioners relied on s. 218(1)(e) of the Companies Act which provides that the Court may wind-up a company if it is unable to pay its debts. In para. 4 of the petition it was contended that the company was indebted to the petitioners in the sum of RM250,000"being a loan due to the petitioners as at 22 December 1979 together with interest thereon at 12% per annum until date of payment".

According to the clerk of the petitioners' solicitors a statutory demand as prescribed by s. 218(2)(a) for the repayment of the alleged loan and interest was pursuant to the said s. 218(2)(a) duly served on the company on 13 November 1984 by his leaving it in the letter box at the registered office of the company because he had found the office locked. The petitioners said that in spite of the said demand the Company had neglected to pay the amount claimed or to secure or compound f