Ian H.C. Chin J:

Introduction

Hock Hua Bank (Sabah) Berhad ("the plaintiff") took out the present writ on 7 February 1994, against nine defendants claiming against them a sum of RM7,681,000 for fraud and/or conspiracy to defraud the plaintiff. It was alternatively claimed against the 2nd to 9th defendants that they were in receipt of the said sum RM7,681,000 which resulted from of a breach of trust and or fiduciary duty by the defendant Lam Tat Ming ("the 1st defendant"). An early trial was held on 8-13, 16-20, 22 & 24 May 1995. The facts of this case are as follows:

Facts of Case

The plaintiff, a commercial bank, has a branch in Labuan ("HHB"). The 1st defendant had been employed by the plaintiff for more than 20 years and he became the current account officer, Class II, in September 1992, and, later on, Class I in March, 1993. Part of his duties were set out in the Current Account Operation Manual ("manual"). The relevant provisions of the manual that was in use from July 1988 until March 1993 are as follows:

Marking of Cheques

23.1 As laid down by the Association of Banks in Malaysia, no bank shall certify a cheque as good for payment except to another bank and a minimu