Augustine Paul JC:

The plaintiff and the defendants entered into an agreement on 20 September 1974 ('the agreement') for the hire of a 1969 model Caterpillar D8H Tractor ('the tractor') for three months at a rent of RM36,000 per month. As the plaintiff failed to make some of the payments the defendants repossessed the tractor. The issue for determination is whether the repossession was lawful.

The material parts of the agreement read as follows:

THE EQUIPMENT

ONE UNIT USED CATERPILLAR D8H TRACTOR, SERIAL NO. 68A1566 C/W ANGLEDOZEN BLADE.

CLASSIFICATION:- SERVICED.

Terms of Rental

1. The equipment shall at all times during the continuance of this Agreement remain the property of the owner and will be rented to the hirer for 3 (THREE) months on payment being effected as follows:

Date Amount

29.9.74 RM36,000

29.10.74 RM36,000

29.11.74 RM36,000

2. The residual value as at 29th December 1974 will be RM36,000.

3. Default in payment or any of the above rental amounts on the due dates or failure by the hirer, in the opinion of the owner, to observe any of the conditions of this Agreement will nullify the Agreement and the owner is entitled to take possession of the equipment witho