JUDGMENT

Gan Techiong JC:

Introduction

[1] The Defendant Dato'Ahmad Faris bin Abdul Halim is the original Defendant in this civil suit. He filed a Counterclaim against the 1st Plaintiff Dato' Sri Zul Azmi bin Abu Hussin and 4 others in his counterclaim.

[2] The Notice of Application before this court was filed by the Defendant (who is the plaintiff in the Counterclaim) against the Plaintiffs in the original action. It is for a Mareva injunction and a discovery order to compel the Plaintiffs to disclose details of money received from the Royal Police Force of Malaysia ("PDRM") pursuant to a contract.

[3] Based on the undisputed facts of the case, I decided that this court ought to issue a Mareva injunction as sought by the Defendant and also a discovery order in aid of execution of the Mareva injunction.

Background Facts

[4] Since the application is about the Defendant's application for a Mareva injunction and a discovery order to compel the Plaintiffs to disclose details of money received from the Royal Police Force of Malaysia ("PDRM") pursuant to a contract, I shall set out only the salient facts for determination of the Defendant's said application.

[5] The 2nd Plaintiff XSPEC Resources Sdn Bhd is a company in which the 1st Plaintiff was, as the material time, a director and sole shareholder.

[6] On 7 February 2019, the 2nd Plaintiff XSPEC Resources Sdn Bhd was awarded a contract ("the said Contract") by PDRM vide a letter of award issued by the Deputy Director of the Special Branch Division of PDRM. Pursuant to the said Contract, the 2nd Plaintiff was to procure and supply technical equipment for the operation of the Special Branch Division in Bukit Aman ("the Project") for a period of three years between 7 February 2019 and 6 February 2022. As no details were pleaded regarding the technical equipment that cost RM53,000,000.00 - presumably because the details must be kept confidential under wraps - one can imagine the equipment to be some highly advanced ones, like those seen only in James Bond 007 movies.

[7] After the 1st Plaintiff had secured the award of the said Contract for the 2nd Plaintiff, he approached Malaysia Debt Ventures Berhad ("MDVB") to seek financing to perform the said Contract. Regardlessof whether it was true or not that the 1st Plaintiff was unable to secure a loan for the 2nd Plaintiff based on his own efforts, the undisputed fact is that he approached the Defendant for financial assistance.

[8] Negotiation between the 1st Plaintiff and the Defendant culminated in a Deed of Trust dated 28 August 2020 ("the said Deed of Trust") being drafted and signed to record their terms of agreement.

[9] In the said Deed of Trust, the 1st Plaintiff declared himself trustee for the Defendant for 196,000.00 shares in the 2nd Plaintiff - which was equivalent to 70% equity. In consideration thereof, the Defendant advanced money for the 2nd Plaintiff to start working on the Project and also undertook to assist the 2nd Plaintiff in obtaining financing from MDVB.

[10] On 8 September 2021, MDVB approved the 2nd Plaintiff's application for a loan of RM28,150,000.00 ("the said Loan"). Pursuant to one of MDVB's terms and conditions, the 1st Plaintiff and the Defendant respectively had to sign, and did sign a personal guarantee as security for the said Loan.

[11] Armed with funds from the Defendant and the said Loan, the 2nd Plaintiff was able to complete the Project in early 2022. PDRM then paid out RM37,100,000.00 to the 2nd Plaintiff under the said Contract.

The Defendant's Application For A Mareva Injunction & Discovery

[12] The Defendant avers that he had expected money received by the 2nd Plaintiff from PDRM to be utilised first to pay MDVB, ie to pay off the said Loan. However, he found out that out of the RM37,100,000.00, received by the 2nd Plaintiff from PDRM, RM33,802,237.33 was paid to ISQ Classic Enterprise (the 3rd Defendant in his Counterclaim) while a sum of RM 3,297,762.67 was paid over to Muzzam Teknologi (M) Sdn Bhd (the 2