JUDGMENT

Shaik Daud Ismail JCA:

This is an appeal by Malaysia Air Charter Co. Sdn. Bhd. (the appellant) against the decision of the High Court given on 6 May 1996 wherein the learned judge ordered the winding-up of the appellant on a petition presented by Petronas Dagangan Sdn. Bhd. (the respondent).

On 18 October 1989, the respondent obtained a judgment in default of appearance against the appellant in the Kuala Lumpur High Court for a sum of RM334,118.79 together with interest thereon at the rate of 8% per annum from 28 October 1988 until date of payment. There was no effort made to apply to have the judgment in default of appearance set aside.

On 16 October 1991, the respondent's solicitors served on the appellant a statutory notice of demand pursuant to s. 218 of the Companies Act 1965. Then on 27 February 1992, the respondent presented a petition for windingup of the appellant, on the ground that the sums demanded in the notice have not been paid by the appellant company. The appellant disputed the validity of the s. 218 notice. On 6 May 1996 the High Court ordered that the appellant be wound up. By consent, the winding-up order was stayed pending appeal to this court.

The iss