Background

1. This appeal arose out of a sale and purchase agreement relating to several pieces of land in Sungai Petani which agreement was executed on 20.3.1997 between the appellant (plaintiff in the court below) as purchaser and the respondent (defendant in the court below) as vendor for a consideration of RM71,409,848.04. At the time of the execution of the said agreement, a sum of RM7,140,984.80 being 10% of the total purchase price, was paid by the appellant by way of deposit and to account of the total purchase price. The receipt of the said sum was acknowledged by the respondent under clause 2.1(a) of the agreement. Under clause 2.(1)(b) of the agreement, the balance of the purchase price were to be settled in two trances as follows:

(i) 15% of the purchase price, i.e. RM10,711,477.20 was payable within 9 months on or before 19.12.1997; and

(ii) final balance of 75% of purchase price i.e. RM53,557,386.04 was payable on or before 19.12.1997 but the appellant has a right to extension of time of 9 months for this payment upon payment of interest at 8%.

2. The appellant failed to pay RM10,711,477.20 on 19.12.1997 nor the said RM53,557,386.04. On 4.1.1998