Abdul Kadir Musa J:

LEC Contractors (M) Sdn. Bhd., the plaintiff, filed in the encl. (3) application on 29 October 1998 for prayers (a) - (e) of the said encl. (3). The said encl. (3) is supported by Joe Hyon Jae, encl. (2), dated 28 October 1998. By that application, the plaintiff is seeking for the following reliefs:

a) a declaration that the defendant is obliged forthwith to pay the sum of RM4,800,000 being the said retention sum under the Conditions of Contract into a separate bank account hereinafter referred to, the defendant thereafter to stand possessed of such sums in such account as trustees thereof to apply the same only in accordance with the trusts specified in cl. 30(4)(a) of the Conditions of Contract:

b) an injunction ordering that the defendant forthwith pay the sum of RM4,800,000 being the said retention sum under the Conditions of Contract into a separate bank account whereby the defendant hereafter to stand possessed of such sums in such account as trustees thereof to apply the same only in accordance with the trusts specified in cl. 30(4)(a) of the Conditions of Contract executed by the plaintiff and defendent on 9 January 1996;

(c) An order that the defendant, for the purposes of payments and the trust referred to in paras (a) and (b) hereof do:

(i) forthwith upon making of this order cause to be opened a separate bank account to be designated "LEC Contractors (M) Sdn. Bhd. (formerly known as Lotteworld Engineering & Constructions Sdn Bhd) Trust Account";

(ii) forthwith upon the opening of such account inform the plaintiff by letter signed by a proper officer of the defendant, disclosing full particulars of the said bank account including the name in which the same is maintained and the number thereof and the name, branch and address of the bank maintaining the same; and

(iii) forthwith upon receipt of all bank statements and other communications of whatsoever nature touching upon or concerning the said bank account furnish true copies of the same to the solicitors of the plaintiff.

d) An injunction restraining the defendant, by its directors, officers, servants or agent or any of them otherwise howsoever from applying the trust monies as and when paid into a separate bank account, otherwise than in accordance with the said trusts; and

e) That the costs of this application be to the plaintiff in any event.

From the above, it is without doubt that the plaintiff's prayer for an order of a declaration as per para (a) aforesaid ("the said Order") is the main and substantive prayer of the encl. (3) application.All the other reliefs sought will have to depend on whether or not the plaintiff is successful in obtaining the said order.

Enclosure (3) application ("the application") was filed by the plaintiff on 29 October 1998 flowing from the undisputed termination or rescission of the agreement contractduly executed between the plaintiff and the defendant, Castle Inn Sdn Bhd, on15 July 1995 ("the contract"). By the contract, the plaintiff was the main contractor and the defendant was the employer for the project known as:

The Execution and Completion of a Proposed Hotel cum Office Development at Jalan Harimau, Johor Bahru, for Castle Inn Sdn Bhd,

for the sum of RM96 million. The terms and conditions of the contract are as stipulated by exh. "JHJ-1" to encl. (2).

From the plaintiff's submission, it became very apparent to me that the main concern of the plaintiff in filing the application was, according to Encik Vincent Lim, learned counsel for the plaintiff, "... to preserve the status quoof the matter ..." pending a final outcome in arbitration pursuant to cl. 34 of the contract. The said cl. 34, inter alia,provides:

34(1) In the event of any dispute or difference should arise between the Employer or Architect on his behalf and the Contractor, either during the progress or after the completion or abandonment of the works, as to any matter ... whatsoever nature arising thereunder or in connection therewi