Harun Hashim SCJ:

Cheam Kim Yu (Cheam) is the registered owner of land held under HS(D) LP513/83 PT No. 1054 in the Mukim of Hutan Melintang, Perak. He obtained a loan of RM95,000 from Malayan United Bank Bhd., now known as MUI Bank Bhd. (the bank) and as security for the loan charged the land to the bank on 29 September 1985. The charge was registered. Cheam failed to repay the loan. The bank sent the statutory notice in Form 16D of the National Land Code dated 5 January 1987 to Cheam to remedy the breach. The said notice expired on 4 February 1987. Cheam failed to remedy the breach. As at 31 January 1987 the outstanding balance of the loan was RM124,061.73 with interest to be calculated at the rate of 14.75% p.a. at yearly rests.

On 16 May 1987 the bank applied to the Court for an order for sale of the charged land under s. 256. On 29 August 1988 the Court granted the order for sale and the auction date to be held on 16 November 1988. Then several applications followed. On 6 March 1989 the Court fixed the reserved price at RM100,000 and 27 May 1989 to be the new auction date as the valuation report was not ready for the first auction date. There were no bidders and the a