ALASAN PENGHAKIMAN

10 September 1997. The following judgment was delivered by Justice Dato' Dr Visu Sinnadurai.

The present action pertains to one of the multitude of actions and applications filed by various parties arising from a joint-venture project undertaken by Teguh Consolidated Sdn Bhd (Teguh) with several other parties. Of particular concern for the present purpose is the suit filed by Teguh against Malayan Banking Bhd (Civil Suit No S2-22-56-91), and an application filed by Malayan Banking against Teguh and Yata Development Sdn Bhd (Yata) in originating summons No S4-24-157-91. Both the civil suit and the originating summons were subsequently consolidated. Thereafter, Teguh filed a statement of claim against Yata. Yata, in response to the statement of claim of Teguh, filed not only a defence but also a counterclaim.

On 24th December 1993, a consent order was entered into whereby all issues relating to Malayan Banking, Teguh and Yata in these actions were resolved, except for the counterclaim of Yata. One of the terms of the consent order was that Teguh agreed to deposit a sum of RM480,000 (in relation to the sum claimed by Yata in the counterclaim), pending the disposal of t