JUDGMENT

1. The plaintiff is the owner of all that parcel of land together with the building thereon and the appurtenances thereof situate at Stakan, 7th Mile Penrissen Road, Kuching, Sarawak containing an area of 6232 square metres, more or less and described at Lot 41 Block 15 Muara Tebas Land District. On 3.9.1990, the plaintiff executed a Memorandum of Charge in respect of the said land and registered as Instrument No. L 1485/1990, in favour of the defendant, as security for the repayment of an overdraft facility in the sum of RM50,000/-, granted by the defendant to a firm registered in the name of Chong Contract Service. On the 24.1.1995, the plaintiff further executed a Memorandum of Increase of Amount Owing Under Charge and registered as Instrument No. L 118/1995, when the defendant agreed to increase the facility granted to Chong [2] Contract Service by another RM30,000/-, thus, rendering the total aggregate facility granted to be in the sum of RM80,000/-.

2. Two months later, the defendant vide letter dated 16.3.1995 informed Chong Contract Service that the firm's application for an additional overdraft facility of RM300,000/- had been approved, subject however, to the terms and conditions as stipulated in the said letter therein.

3. Later on, the defendant on 20.9.1995 further approved an additional overdraft facility of RM150,000/- to the said firm also subject to the terms and conditions as contained in the letter of the even date.

4. According to the plaintiff, she had entered into an agreement with one Wong Hai and Ling Sui Hung on 21.12.1996 for the sale of the abovesaid land and that a sum of RM115,000/- had also been paid pursuant to the said agreement. Consequently, Messrs Arthur Lee, Lin & Co. Advocates, acting on behalf of the plaintiff herein and also the alleged purchasers, wrote to the defendant requesting for particulars of the redemption sum in respect of the said land. On 13.2.1997, the defendant informed the said advocates that the amount required to redeem the said land calculated up to 28.2.1997 was in the sum of RM319,100/-.

5. It is the contention of the plaintiff that the sum of RM319,100/- as stated by the defendant did not represent the correct amount owing under the Memorandum of Charge and the Memorandum of Increase Amount Owing Under Charge (hereinafter to be referred together as the said Charge). The plaintiff further indicated that the aggregate amount secured under the said Charge was limited to RM80,000/- only. As such, the plaintiff took out the Writ of Summons against the defendant and pursuant to O. 33 r. 2 of [3] the Rules of the High Court, 1980 and also the inherent jurisdiction of this court, applied for determination of the following issues as shown in the Summons In Chambers dated 12.2.1998 as follows:-

(A) ;whether as a Chargor under the Memorandum of Charge Instrument No. L.1485/1990 and Memorandum of Increase of Amount Owing Under Charge Instrument No. L.118/1995, the Plaintiff always has the right to redeem the land charged thereunder;

(B) ;whether according to the interpretation of the terms and provisions in the Memorandum of Charge Instrument No. L.1485/1990 and the said Memorandum of Increase of Amount Owing Under Charge Instrument No. L.118/1995 the Defendant is entitled to include in the redemption sum for the discharge of the above-named 2 instruments, the outstanding amount of loan advanced to Chong Contract Service pursuant to the Letters of Offer dated 16-3-1995 and 20-9-1995;

(C) ;whether the Defendant is entitled, under the said Memorandum of Charge and the said Memorandum of Increase of Amount Owing Under Charge, to treat the amount advanced by the defendant to Chong Contract Service pursuant to the Letters of Offer dated 16-3-1995 and 20-9-1995 as the secured loan advanced under the said Memorandum of Charge and Memorandum of Increase of Amount Owing Under Charge;

and

(D) ;whether the Defendant is entitled, under the said Memorandum of Charge and the Memora