Harun Hashim SCJ:

The only issue in this appeal is whether the Sessions Court has exclusive jurisdiction to hear scholarship agreement cases. The brief facts giving rise to this appeal are as follows:

The first respondent was awarded a scholarship in 1975 by Bank Negara to read law at a university and subsequently to read-in-chambers at a firm of solicitors. In consideration of the scholarship grants, the first respondent was required to serve Bank Negara for a total period of 12 years failing which he was to pay Bank Negara RM90,000. He left the service of Bank Negara after 4½ years. Bank Negara demanded payment of the RM90,000 but the first respondent failed to do so, whereupon Bank Negara took out a writ in the High Court on 18 November 1986, claiming the sum of RM90,000 as liquidated damages, interests and costs. The other four respondents are sureties of the first respondent.

On 19 October 1990, the respondents took out a summons-in-chambers that Bank Negara's (the appellant) writ be struck out on the ground that the High Court has no jurisdiction to hear the case. It was argued that s. 7 of the Contracts (Amendment) Act 1976 (the Act) conferred exclusive jurisdictio