Anuar Zainal Abidin J:

This is an application (Encl. 1) by the plaintiffs by way of originating summons for an order for:

(a) A declaration that, subject to s. 191 read with s. 292(1)(a) of the Companies Act 1965 all amounts due to the plaintiffs from Indo Malaysia Engineering Company Bhd., being pro rata bonus, termination benefits, leave pay and indemnity in lieu of notice amounting to RM1,778,795.79, ranks prior to the debenture holders.

(b) In the alternative a declaration that the order made on 4 September 1986 by the Commissioner for Labour, Port Klang ordering Indo Malaysia Engineering Company Bhd., to pay the plaintiffs a sum of RM1,778,795.79 being pro rata bonus, termination benefits, leave pay and indemnity in lieu of notice, ranks prior to the debenture holders subject to s. 191 read with s. 292(1)(a) of the Companies Act 1965.

The plaintiffs were the employees of the defendant company.

On 11 July 1986 the United Asian Bank Bhd., appointed Mr. Chua Teong Hooi and Raja Arshad bin Raja Tun Uda as receivers of the defendant company.

The receivers terminated the services of the plaintiff on 11 July 1986. The plaintiffs lodged a complaint to the Commissioner for La