JUDGMENT

Nallini Pathmanathan FCJ:

Introduction

[1] The evolution and expansion of commercial arbitration, globally, have brought to the fore conflicts between arbitration and other areas of the law. The present appeal relates to the tension between the winding-up process in insolvency and arbitration when the debt which comprises the basis for the winding-up petition is subject to an arbitration clause.

[2] In the instant case, the Appellant, V Medical Services (M) Sdn Bhd ('the Company') sought a Fortuna injunction to restrain Swissray Asia Healthcare Co Ltd ('Swissray') from bringing a winding-up petition on the grounds that there subsisted a dispute in relation to the debt which comprised the subject matter of the winding-up petition.

[3] The core of the Company's argument was that, in light of the subsistence of an arbitration clause in relation to the debt founding the basis for the winding-up petition, the applicable test to determine whether a Fortuna or restraining injunction ought to be granted to preclude the presentation of the winding-up petition and defer/accede to arbitration, was the lower threshold test enunciated in Salford Estates (No 2) Ltd v. Altomart Ltd (No 2) [20