Mohamed Dzaiddin FCJ:

[1] This is an appeal from the decision of the Court of Appeal concerning the powers of the receivers and managers appointed under the debenture to sell the property charged under the National Land Code by private treaty.

[2] On 24 July 2002, we granted leave to appeal on the following question of law:

Notwithstanding a valid Power of Attorney contained in a Debenture, can the Receivers and Managers appointed under the said Debenture proceed to sell the property charged under the National Land Code by private treaty?

Brief Facts

[3] The first respondent is the registered proprietor of the lease of a piece of land held under qualified title HS(D) 143155 PTD 80563, Mukim of Plentong, District of Johor Bahru, Johor (the said lease).

[4] On 30 June 1992 the first respondent executed a debenture in favour of the second respondent as security for banking facilities granted by the latter Later, the first respondent executed a first legal charge over the said lease under the National Land Code which was duly registered on 18 July 1992.

[5] On 9 February 1994 the second respondent exercised their right under the said debenture and appointed one Lim Tian Huat of Messrs