Abdul Malek Ahmad JCA:

[1] These appeals stem from an originating motion filed in the High Court at Ipoh (OM No 21-40-95) on 6 May 1995 by the first respondent in Civil Appeal No A-01-164-96 (hereinafter 'the first appeal') against the second respondent in that same appeal, who did not appear before us, for the following orders:

(a) that the second respondent acting on behalf of the State Authority do issue or cause to be issued individual subdivided issue documents of titles over the lands held as follows:

(hereinafter 'the parent titles') all in the Mukim of Kampar, Daerah Kinta, Perak and the charge presentation No 19782/82 Jilid 1351, Folio 33 dated the 15 October 1982 duly endorsed thereon pursuant to the second respondent's letter dated 13 January 1984 and hand them to the first respondent;

(b) further or in the alternative, the second respondent do cancel the memorials of surrender on the aforesaid titles and return the original issue documents of title to the first respondent together with all premiums and other charges totalling RM931,466.30 paid thus far with interest thereon.

[2] Since the second respondent in the first appeal was not before us and since the first respondent in the first appeal is the same as the respondent in the second appeal, we shall hereinafter refer to the first respondent in the first appeal as the respondent for both appeals and reference to the second respondent would mean the second respondent in the first appeal.

[3] On 30 November 1995, the appellants here had by summons in chambers applied for leave to intervene and consequently for leave to state the causes of action and to file a statement of claim in the matter, for costs, and for other consequential relief. This was dismissed by the learned trial Judicial Commissioner on 7 May 1996.

[4] The facts are not exactly in dispute. The appellants had entered into sale and purchase agreements on various dates from 1984 to 1988 to purchase housing units in a project undertaken by Columbia Kinta Sdn Bhd (hereinafter 'the developer'). The usual application for subdivision was made as regards the nine parent titles as regards the lands on which the housing project was being undertaken.

[5] The respondent was the chargee in the bridging loan taken by the developer and had consented to surrender the titles to the second respondent for the charges to be endorsed. The State Authority accepted the surrender on 31 October 1984.

[6] Except for the 42nd, 43rd, and the 46th to the 65th appellants in the first appeal who took a Government loan, the rest had taken a loan from the respondent. The project was abandoned midway and the borrower appellants had justifiably refused to pay. The respondent sued for the recovery of the loan and the appellants had filed their defence and counterclaims The Sessions Court had on 12 November 1993 dismissed the claims and allowed all the counterclaims for the refund of interest paid.

[7] At this point of time, it is appropriate to reproduce the extract of the judgment of the Sessions Court as to the factual finding of the learned Sessions Court Judge on the issue of title:

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The next point that is raised by the defendants lies entirely on the evidence given by DW11, Encik Razman bin Hj. Yahya, the Timbalan Pendaftar Hak Milik, Perak. According to DW11 the lands in question have reverted to the State Government, Perak, by virtue of a surrender of the titles by the developer with the express consent of the plaintiff bank. Under the provisions of the National Land Code such a surrender is an unconditional surrender with the land in question reverting to the State Government free of encumbrances. Such reverting tantamounts to forfeiture of the land by the State Government. DW11 produced all the original land titles, D88 A to D88 I, on which is endorsed the memorial pursuant (to) s 198, National Land Code and the titles are cancelled. This surrender of titles is accepted on 31 October 1984 whereas the loan agreement, P21, is date