This originating summons was taken out by the plaintiffs, the liquidators of a stockbroking company, City Securities Pte (hereinafter called 'City'), to determine the legal nature of certain security instruments created by City in favour of 18 banks who are the defendants herein.

Pursuant to a creditor's petition filed on 3 July 1986, City was wound up by an order of court made on 31 October 1986. In the meantime, on 4 July 1986, provisional liquidators were appointed. Prior to the presentation of the winding-up petition, City had at diverse dates obtained loans, advances or credit facilities from each of the 18 defendant banks. As security for the facilities obtained, City executed in favour of each of the first 18 defendants a letter of hypothecation whereby City charged to each bank all stocks and shares held by City in the course of its business, which were more particularly listed out in daily certificates (in the case of the fourth defendant, periodic notices, and the eighteenth defendant, periodic certificates) furnished or to be furnished by City to each bank. The instrument held by the eighteenth defendant was just a 'facility letter' issued by that defend