JUDGMENT

Hasnah Mohammed Hashim JC:

(1) Enclosure 62 is the plaintiffs application for security for costs from the 1st defendant pursuant to s. 351 of the Companies Act 1965. The plaintiff prays for the following orders:

1) that the 1st defendant pays RM250,000 as security for costs within seven days from the date of the order of the court;

2) that all proceedings in this suit is stayed pending the payment of the security for costs; and

3) in the event the security for costs is not paid the defence and counter claim dated 20 September 2010 is dismissed/struck out with no order as to cost.

(2) The application is supported by an affidavit in support affirmed on 27 October 2010.

(3) Grounds For The Application

i. The 1st defendant was wound up by an order dated 4 February 2010;

ii. The 1st defendants liabilities more than its asset; and

iii. The defendant had filed a defence and a counter claim dated 20 September 2010.

Brief Facts

(4) The defendant was incorporated in 1982 and its principal activity was property development. The defendant undertook the development of 454 low and medium cost semi-detached houses in 1991. The project was initially a joint venture however th