Introduction

[1] After a full trial, the learned High Court Judge dismissed the plaintiff s claim with costs in the sum of RM100,000.00 payable by the plaintiff to the defendant bank. Aggrieved by the decision, the plaintiff (now the appellant before us) filed an appeal against the whole decision of the learned judge of the High Court.

[2] Before us, learned counsel on both sides argued the appeal at great length. It is quite natural that the defendant bank (now the respondent bank before us) supported the decision of the learned judge of the High Court.

The Facts And The Analysis Thereto

[3] The appellant, as the customer of the respondent bank, had applied for and had been granted credit facilities since 1993, inter alia, to facilitate the appellants core business and that would be: trading in imported livestock. The banker-customer relationship between the appellant and the respondent bank went a long way.

[4] On the appellants application, the respondent bank approved on 21 April 1993 the following facilities in favour of the appellant, namely:

overdraft, letter of credit/Trust Receipt ("LC/TR") and bankers guarantee ("BG"). The breakdown are as follows:

(a) Over