Suriyadi Halim Omar J:

The defendant enjoyed an overdraft facility for the sum of RM1.8 million from Southern Bank Berhad pursuant to an agreement. This facility was secured by fixing a legal charge over a piece of land under title No. HS(D) 6694, PT 73, Kawasan Bandar XXXI, District of Melaka Tengah. Subsequently an additional sum of RM700,000 was sought for by the defendant from the plaintiff, thus increasing the facility to RM2.5 million. This additional RM700,000 was conditional on the same piece of land being charged a second time in favour of the plaintiff. When the material document was brought to the land office for registration, that office refused to register the second charge. Inspite of that failure, the bank still disbursed the additional RM700,000. Therefore, for all intents and purposes the material land had only one charge over it. Subsequently, the defendant failed to make the periodical payments and the plaintiff took up proceedings to foreclose the material land. By 13 May 1998, the gross sum owed, inclusive of interest had exceeded RM2.7 million. Pursuant to the agreement of the facility, and in line with s. 253 of the National Land Code, the plaintiff