Abdul Hamid Mohamad FCJ:

Capital Insurance Berhad, the appellant in this court was the respondent in the Court of Appeal and garnishee in the High Court. Cheong Heng Loong Goldsmiths (KL) Sdn. Berhad, the respondent, was the appellant in the Court of Appeal and also one of the plaintiffs (originally judgment creditor) in the High Court. Chan Kim Swee @ Tung Kim Swi ("the insured") was the judgment debtor and later one of the plaintiffs in the High Court. His position in the Court of Appeal will be stated later. However, he is not one of the Respondents in this court. This appeal is only between Capital Insurance Berhad ("the appellant") and Cheong Heng Loong Goldsmiths (KL) Sdn. Bhd. ("the respondent").

To appreciate the full facts of the case, I shall narrate them in chronological order.

On 16 October 1984, on a consideration of the premium of RM25,802 paid by the insured, the appellant issued a Jeweller';s Block Policy No. 000104 JB 84/CKL/JH. Under the terms of the policy, the appellant agreed to insure and indemnify the insured against, inter alia, loss arising from any hold-up or robbery of stock and merchandise of the insured';s business and bank notes whether the