JUDGMENT

Roz Mawar Rozain J:

[1] This action is brought by the liquidator of the plaintiff, a company in liquidation, against the defendant, a related entity, for recovery of an alleged debt. The plaintiff relies on its audited accounts and ledgers in support of the claim, whilst the defendant disputes liability on the basis of subsequent transactions and an asserted set-off. the court, having considered the evidence and submissions of counsel, now sets out the background, the issues and its analysis and findings.

[2] This court finds that the plaintiff has established a prima facie case pursuant to s 518(1) of the Companies Act 2016, that the defendant is indebted to the plaintiff in the sum of RM5,373,701.54 based on the plaintiff's books and papers, comprising the 2016 audited accounts, general ledgers for 2012 to 2018, and the auditors' confirmation letter dated 17 June 2020. This prima facie case is strengthened by the acknowledgment of the defendant through its director, who was a common director of the plaintiff at the material time, who signed and verified the plaintiff's 2016 audited accounts and admitted during trial that the debt was owing as at 2016. There was a failure on