James Foong JCA:

Introduction

[1] The appellant, as plaintiff, has sued the respondent on 10 October 2005 in the High Court for a sum of RM2,097,315.62 with interest thereon at 8% per annum from 24 March 1999 and costs. The writ of summons was served on the respondent on 27 October 2005 and when no appearance was filed by the respondent within the prescribed time, judgment in default of appearance was entered against the respondent on 22 November 2005. When the respondent failed to satisfy the judgment sum, despite being served with a sealed copy of the judgment order on 30 November 2005, the appellant issued a notice under 218 of the Companies Act 1965 to the respondent. Still receiving no reaction from the respondent, the appellant presented a winding-up petition against the respondent in the bankruptcy court. This time, the respondent responded by filing an application on 23 March 2006 to strike out the appellant's judgment in default. This was some 2 months 24 days after the period of 30 days after the receipt of the judgment order.

[2] Three grounds were listed by the respondent in support of its application to set aside the judgment in default of appearance:

1. There