Lim Beng Choon J:

[1] Metro Construction Sdn Bhd (Metro) the defendants in this originating summons, are the registered owners of the land held under Grant 1st Grade Lot 297 Section 1, Tanjung Tokong, Penang (the land). They executed two third party charges on the land in favour of Public Bank Bhd (the bank) to secure the repayments of the two loans amounting to RM1.2 million given by the bank to the third party, Tenaga Muhibbah Sdn Bhd (Tenaga). The two charges were duly registered under s 242 of the National Land Code 1965 on the same date, that is, on 13 December 1984. The instruments effecting the charges namely Form 16A with the annexures were signed by two persons who claimed to be directors of Metro and the said instruments were duly affixed with the company's seal. Apparently Tenaga failed to repay the loans and the accrued interests and on 24 December 1985, the bank accordingly issued a notice in Form 16D pursuant to s 254 of the National Land Code 1965 to Metro demanding payment of the outstanding sum within the period as specified in the notice failing which the bank would apply to the Court for an order for the sale of the land. Metro had failed to settle the out