Alauddin Mohd Sheriff FCJ:

Background Facts

[1] The respondent had, on 28 March 1984 approved a housing loan application by the appellant, who is a Life Policyholder of the respondent, for the amount of RM142,000 with interest thereon at 12% per annum.

[2] By way of security, the appellant, had among others created a first legal charge over his land held under TitleNo: GM 1984, Lot No 11393, Mukim of Kuantan, District of Kuantan, Pahang ('the said land') in favour of the respondent.

[3] The appellant had defaulted in the repayment of the housing loan and Respondent thereafter exercised their statutory rights and foreclosed the said land by way of a public auction on 16 March 1992.

[4] The said land was sold for RM80,100 leaving a balance of RM336,012.52 still due and owing from the appellant to the respondent.

[5] Pursuant to cl 7 of the Annexure to the charge, the appellant, as chargor, had agreed that he shall pay to the respondent the difference between the amount due and the amount realised from the sale and, until such payment, will also pay interest on the balance due at the prescribed rate with monthly rests.

[6] Relying on cl 7 of the Annexure to the charge, the respondent