JUDGMENT

Abdul Hamid Mohamad FCJ:

On 23 October 1987, the appellant (judgment creditor) obtained a judgment against the respondent (judgment debtor) for the sum of RM2,963,054.86 with interest thereon at the rate of 16.5% per annum from 1 December 1985 until the date of realisation.

On 28 March 1996, the appellant took out a bankruptcy notice and served it on the respondent on 3 June 1996.

On 7 June 1996 the respondent served on the appellant an "Affidavit On Application To Set Aside Bankruptcy Notice" pursuant to r. 95 of the Bankruptcy Rules 1969 claiming that the respondent had a counterclaim against the appellant which the respondent could not set up in the action in which the judgment was obtained.

On 10 June 1996, the respondent served on the appellant a notice pursuant to s. 3(2)(ii) of the Bankruptcy Act 1967 alleging that the bankruptcy notice was incorrect and excessive in that the sale of the respondent's shares and dividends on the shares had not been taken into account in the bankruptcy notice and that the appellant had not given a proper breakdown of the sales of the shares.

The respondent filed affidavits in reply in relation to both the r. 95 affidavit and the notic