Hj. Mohd. Jemuri Bin Serjan CJ (Borneo):

The appellant, Penang Development Corporation (the Corporation) is a statutory body established under the provisions of the Penang Development Corporation Enactment 1971, (No. 10 of 1971) (the Enactment) with powers, inter alia, to enter into contracts and may acquire, purchase, take, hold and enjoy movable and immovable property of every description and may convey, assign, surrender, yield-up, charge, mortgage, demise, reassign, transfer or otherwise dispose of or dealt with, any movable or immovable property or any interest therein vested in the Corporation upon such terms as the Corporation deems fit but not inconsistent with the provisions of the Enactment. The Corporation consists of the Chairman, two ex-officio members, namely, the State Secretary and the State Financial Officer and not more than six other members to be appointed by the State Authority and three representatives of the Federal Government. However, at the material time there were altogether 18 members, including the Managing Director in the Corporation. Under s. 10 of the Enactment the Corporation may, by resolution, delegate to any member, officer or servant of the Corporation the power and authority to carry out on their behalf such duties, powers or functions as the Corporation may determine. The Corporation is invested with duties and powers, inter alia, to promote the development of agricultural, industrial, commercial, trading and residential areas and/or projects in the State designated for such purposes; and to undertake agricultural, industrial, commercial, trading and housing enterprises (emphasis supplied) and to do all such other acts and things as are necessary for the exercise or performance of all or any of the functions and duties of the Corporation. The Corporation has its own fund known as Penang Development Corporation Fund which consists of, inter alia, such sums as may from time to time be paid to the Corporation out of the general revenues of the State of Penang, or donated by the Government of Penang, the Federal Government or any Government in the Federation or by any other person for the purposes of the Corporation; such sums as may from time to time be raised by the Corporation by loan as well as all rents and proceeds of sale profits and income and other funds derived by the Corporation directly or indirectly from the property belonging to the Corporation; and all such other sums as may from time to time be paid to the Corporation. The fund is established under s. 19 of the Enactment. The fund may be applied for the payment of the expenses and allowances of the members, the salaries, fees or remuneration of the officers, agents and servants and technical or other advisers of the Corporation; and all costs, charges and expenses of and incidental to the exercise of the powers of the Corporation under the Enactment. The Fund may also be applied in defraying any other expenditure authorised by the Corporation and properly chargeable to revenue account. It is also provided under s. 21A that the expenses of the Corporation shall be defrayed out of the monies in the fund in accordance with the estimates as may be authorised. However, the Corporation may at any time submit to the Chief Minister a supplementary estimate for any one year and the Chief Minister may allow the whole or any part of the additional expenditure included therein.

In line with the practice of all other statutory bodies in Malaysia, the Corporation may set up committees to look after any specific project of the Corporation and for this purpose the Corporation may delegate under s. 10 by resolution to the various committees its power and authority to carry out on their behalf such duties, powers or functions as the Corporation may determine. One of such committees that was appointed and relevant to this appeal was the Housing Committee under the chairmanship at the material time of Professor A.J. Ratnam who was also