In this paper, we consider an interaction of prey and predator species where prey species have the ability of group defence. Thresholds, equilibria and stabilities are determined for the system of ordinary differential equations. Taking carrying capacity as a bifurcation parameter, it is shown that a Hopf bifurcation can occur implying that if the carrying capacity is made sufficiently large by enrichment of the environment, the model predicts the eventual extinction of the predator providing strong support for the so-called 'paradox of enrichment'.