[1] In 2002, the appellant called for tenders for the long term supply of coal for its Tanjung Bin Power Project. The tender documentation provided to the respondent included the proforma Coal Purchase Contract, Bid Form, and Form of Bid Bond.

[2] On or about 4 December 2012, the respondent submitted its bid which included:

(i) A duly completed Bid Form to supply coal for 15 years. This form was signed by the respondent's Deputy Managing Director, Mr Pan Wanze;

(ii) A Bid Bond dated 2 December 2002, issued jointly by Standard Chartered Bank Malaysia Bhd and the respondent in the sum of RM500,000; and

(iii) Technical proposals for the supply of the coal.

[3] The joint bid bond submitted by the respondent was signed by one William Randall who was the lawful attorney of the respondent, pursuant to a Power of Attorney issued by the respondent on 26 November 2002 duly notarised in Hong Kong. This Power of Attorney authorised Randall to negotiate a contract on behalf of the respondent to supply coal to the appellant.

[4] The appellant accepted the respondent's bid and issued a letter of accep