Zakaria Yatim J:

[1] This is an appeal by the plaintiff against the decision of the Senior Assistant Registrar given on 25 October 1987 ordering that judgment in default of defence entered against the defendant on 27 January 1987 be set aside. The plaintiff is a registered company incorporated in Malaysia and has its place of business at No 27, Jalan Ungu 7, Taman Pelangi, Johor Bahru. The defendant is a main contractor undertaking the construction of Sekolah Agama, Air Molek, Johor Bahru from the SEDC, Johor. By an oral agreement made between the plaintiff and the defendant in July 1985, the plaintiff agreed to undertake the construction of the said school from the defendant. It was agreed that the defendant would pay the plaintiff for the progressive work carried out by the plaintiff as and when the defendant was requested to pay by the plaintiff. In the statement of claim the plaintiff averred that they commenced work on 3 September 1985, but in breach of the said oral contract the defendant refused, neglected and/or wrongfully refused to pay the sum of RM176,595.12 being progressive work done and material supplied on the site. The plaintiff, had by a letter dated 13 Augu