Nik Hashim J:

[1] This appeal before this court involves an important point of banking law whether a bank which pays a cheque for which it has received a valid countermand from its customer can recover the payment from the payee.

[2] The appellant in this case is the Bank Bumiputra Malaysia Berhad ('the bank') whilst the respondent is the payee (DW1). The bank's claim against the respondent is for the return of the sum of RM25,000 together with interest and costs in respect of the payment of a cheque BBMB No 023688 dated 5 December 1992 (the cheque) in the name of the respondent, but the cheque was countermanded by the customer (PW4) of the bank before the payment. The cheque was a post-dated cheque issued by PW4 to the respondent along with eight other post-dated cheques, being part payment for the purchase of 90% shareholding in Nova Sante Corporation Sdn Bhd (the company) by PW4 and one Robert J Hubbard from the respondent for a total purchase consideration of RM430,000. A sum of RM100,000 had already been paid to the respondent leaving a balance sum of RM330,000 which was to be settled by way of nine monthly instalments in post-dated cheques, including the cheque. On 4 De