JUDGMENT

Prasad Sandosham Abraham JC:

[1] I disposed of the plaintiff's application in encl. 3 and granted an order in terms, restraining the defendant from calling by way of demand on the performance bond issued by Malayan Banking Berhad (the said bank). I allowed the application on 10 November 2009 and below are hereinafter set out, my reasons for so doing.

[2] The relevant facts are that the plaintiff and the defendant entered into an agreement dated 10 October 2006 wherein the defendant appointed the plaintiff and the plaintiff agreed to carry out and complete the works to design, build and complete the construction of a store complex (TEKNIKAL) Kuala Lumpur/Timor/Kuala Lumpur - "Pusat dan local warehouse" on Lot 11553 Mukim Hulu Kelang, Daerah Gombak, Selangor Darul Ehsan (hereinafter referred to as the said project) upon the terms and conditions and for the consideration set out in the aforesaid agreement, (the said agreement).

[3] Among the salient terms of the said agreement, the plaintiff was to furnish a performance bond for a value of RM517,062 as a Security to the defendant in the event the plaintiff failed to complete the works under the said project. The other sali