Siti Norma Yaakob JCA:

[1] This appeal concerns a tenancy dispute and in substance the cause of action is founded on the following facts.

[2] The respondent is the owner of a three storey shop house with a penthouse known as No. 15, Jalan 14/20 Petaling Jaya, Selangor ("the demised premises"), which he had let out to the appellant. For the purpose of this judgment, I shall refer to the appellant and the respondent as the tenant and the landlord respectively.

[3] The parties' relationship as landlord and tenant was initially evidenced by a memorandum of understanding, if I may call it that, dated 26 December 1984, wherein the landlord acknowledged:

(1) the receipt of RM6,000 from the tenant, being the deposit for one month rental of the ground and first floors of the demised premises.

(2) that a formal tenancy agreement for a period of two years would be executed between them to take effect from 1 March 1985.

(3) that the tenant had the option to renew the tenancy upon expiry, for five-year terms every five years with a new rental to be adjusted at current market price.

(4) that maintenance of the structural walls, electrical wiring and water connection was to be his so