JUDGMENT RK Nathan J:

This is the plaintiff's application for sale by public auction of six properties (the said properties) belonging to the defendant and charged to the plaintiff as security for a loan of RM20 million granted by the plaintiff to the defendant at the latter's request. A loan agreement dated 26 August 1996 was executed by the parties containing numerous terms and conditions. The plaintiff contended that the defendant had breached the terms of the agreement and sent to the defendant a notice of demand dated 18 May 1999 and which is reproduced in full. It reads as follows:

Travers Development Sdn Bhd BY HAND/ Level 9, Grand Seasons Avenue REGISTERED & No. 72 Jalan Pahang ORDINARY POST 53000 Kuala Lumpur and/or

lst Floor, Wisma Equity No. 150 Jalan Ampang 50450 Kuala Lumpur and/or,

Lot 7.01, 7th Floor, Wisma Equity Jalan Ampang 50450 Kuala Lumpur

19th May 1999

Dear Sirs

Re: HONG LEONG FINANCE BERHAD Term Loan Facility of RM20 million

We act for Hong Leong Finance Berhad of Level 1, Wisma Hong Leong, 18 Jalan Perak, 50450 Kuala Lumpur who has granted you the abovesaid facility.

2. Our client instructs us that despite repeated demands you have failed, refused and/or neglected to pay the arrears of instalments due under the said facility.

3.Our client now wishes to recall the said facility.

We are therefore instructed to demand from you which we hereby do the sum of RM22,878,092.83 which sum is due and owing from you as at 15th May 1999, computed as follows:-

Balance outstanding as at 30.4.99 RM22,762,216.44

Interest from 1.5.99 till 15.5.99 RM 114,746.50

Late payment interest from 1.5.99 RM1,129.89 till 15.5.99 _______________ RM22,878,092.83 =============

4.TAKE NOTICE that should we fail to receive the aforesaid sum of RM22,878,092.83together with a further sum of RM250.00 being our solicitors' costs herein incurred within seven (7) days hereof, we have our client's instructions to proceed with legal action against you without any further reference to you.

In such event, our client holds you liable for all additional interest accrued together with costs and expenses incurred including all legal fees on a solicitor and client basis.

Yours faithfully,

Sgd.

c.c. Guarantor - Chan Teik Huat Client (Ref: 154-38-00021-6)

When there was no response to the notice of demand the plaintiff's solicitors sent the statutory notice, the form 16D, with an accompanying letter dated 9 May 2000. Both the letter and the form 16D are reproduced as follows:

Travers Development Sdn Bhd BY HAND Level 9, Grand Seasons Avenue No. 72 Jalan Pahang 53000 Kuala Lumpur and/or,

Tingkat 1, Wisma Equity No. 150 Jalan Ampang 50450 Kuala Lumpur and/or,

Level 9, Grand Seasons Avenue No. 72 Jalan Pahang 53000 Kuala Lumpur and/or,

Lot 7.01, 7th Floor, Wisma Equity Jalan Ampang 50450 Kuala Lumpur

9th May 2000

Dear Sirs

Re: HONG LEONG FINANCE BERHAD Charge over lands held under:-

1. Geran No. 25022 (dahulunya CT No. 7101) Lot No. 2 Sek. 95 Bandar Kuala Lumpur

2. CT No. 11006 (Geran No. 29446) Lot No. 48 Sek. 95 Bandar Kuala Lumpur

3. CT No. 11007 (Geran No. 29445) Lot No. 49 Sek. 95 Bandar Kuala Lumpur

4. CT No. 1 1009 (Geran No. 29444) Lot No. 51 Sek. 95 Bandar Kuala Lumpur

5. CT No. 11580 (Geran No. 28871) Lot No. 59 Sek. 95 Bandar Kuala Lumpur

6. CT No. 11581 (Geran No. 29443) Lot No. 60 Sek. 95 Bandar Kuala Lumpur

We act for Hong Leong Finance Berhad of Level 1, Wisma Hong Leong, 18 Jln Perak, 50450 Kuala Lumpur.

2. Pursuant to Section 254 of the National Land Code 1965, we enclose herewith a Notice in Form 16D by way of service on you.

Yours faithfully,

Sgd.

Encl. c.c. Client (Ref: 154-38-00021-6)

NATIONAL LAND CODE

FORM 16D

(Section 254)

NOTICE OF DEFAULT WITH RESPECT TO A CHARGE

To: Travers Development Sdn Bhd Level 10, Grand Seasons Avenue No. 72 Jalan Pahang 53000 Kuala Lumpur

and/or

Tingkat 1, Wisma Equity No. 150 Jalan Ampang 50450 Kuala Lumpur

and/or

Level 9, Grand Seasons Avenue No. 72 Jalan Pahang 53000 Kuala Lumpur

and/or

Lot 7.01