By way of a notice of motion in encl 44, the applicant sought the following orders:

(1) that the applicant be paid the proceeds of the sale to SPI Plastic Industries (M) Sdn Bhd by the abovenamed company ('Campall') under the sale and purchase agreement dated 18 October 1994 of the land held under HS (D) 9697 PTD 1494 Mukim of Linau, Batu Pahat, Johor ('the land') and the building thereon in the sum of RM2m and interest accruing thereon;

(2) that the applicant be paid the proceeds of the sale of machinery to SPI Plastic Industries (M) Sdn Bhd by Campall under the sale and purchase agreement dated 18 October 1994 in the sum of RM50,000 and interest accruing thereon;

(3) that the applicant be paid the sum of RM600,000 received by Campall from Jamuri Sdn Bhd under a sale and purchase agreement dated 5 March 1993 and the interest accruing thereon;

(4) that the applicant be paid the sum of RM119,985.60 received by Campall as rental for the use of the land and the building thereon and interest accruing thereon;

(5) that the applicant be paid all monies belonging to Campall held in and/or accruing from accounts maintained by Campall with financial institutions;

(6) that the applicant be paid out of all other assets of Campall the balance of the debt owing from Campall to the applicant amounting to RM5,217,779 as at 15 July 1996 and increasing at a rate of 12.48% per annum calculated on a daily basis;

(7) that the costs of this application be paid out of the assets of Campall, if any, upon satisfaction of the above;

(8) alternative to prayers (1) to (7) above, that this Honourable Court hereby determines the priority of payment of the liabilities of Campall from the assets of Campall; and

(9) such further and other order as this Honourable Court deems fit.

In support of encl 44, Ong Meng Teck affirmed an affidavit in encl 43 on 28 August 1996. Enclosure 43 makes for interesting reading. The facts distilled from encl 43 may be stated thus. Campall is the debtor of the applicant one Perdana Merchant Bankers Bhd ('Perdana'), formerly known as 'Intradagang Merchant Bankers Bhd'. As at 15 July 1996, Campall owed RM5,217,779 to Perdana for banking facilities granted by the latter to the former pursuant to two loan and facility agreements dated 6 September 1989 ('the first agreement') and 18 October 1990 ('the second agreement').

Under the first agreement, Campall was granted a revolving credit facility up to a limit of RM1m and was allowed banker's acceptance facility to an aggregate principal limit of RM500,000. The facilities provided under the first agreement were secured against a fourth legal charge over the land and against a first fixed and floating charge over all of Campall's existing and future assets and undertakings excluding the land and building thereon, by way of a debenture dated 6 September 1989 ('the first debenture').

By the second agreement, Campall was extended an additional revolving credit facility and banker's guarantee facility with a combined maximum aggregate principal amount of RM1.6m. The banking facilities under the second agreement were secured against a second legal charge over the land and a second fixed and floating charge over all of Campall's assets and undertaking, present and future excluding the land and building thereon. It is interesting to note that the charges created pursuant to the first agreement and the second agreement were duly registered in accordance with the National Land Code 1965 ('the NLC') and the Companies Act 1965 ('the Act').

In rebuttal of encl 43, Ng Pyak Yeow ('Ng') affirmed an affidavit-in-reply on 25 October 1996 as reflected in encl 49. Ng was the duly appointed liquidator of Campall pursuant to an order of the Johor Bahru High Court dated 20 March 1993 vide Winding-Up Petition No 28–34–1992. In short, Campall was wound up on 20 March 1993 and Ng was appointed the liquidator. Prior to that winding up exercise, Campall had obtained banking facilities from Pe