JUDGMENT

James Foong JCA:

Introduction

[1] The 1st Defendant, a family owned Company, is the owner of a piece of land of approximately 7 acres and held under HS (D) KA 81943 for lot PT 162011 in the Mukim of Hulu Kinta, Perak (the said land). It is strategically located in Ipoh where there is a hyper market known as Jaya Jusco right opposite. The 2nd Defendant is a director of the 1st Defendant who was authorized to deal with the said land. On 16 November 2000, the 2nd Defendant issued a letter for and on behalf of the 1st Defendant to one Lee Soon Tuan, a promoter of a Company to be incorporated, agreeing to let the said land for an entertainment outlet. It was agreed that this arrangement was to be formalized by a written tenancy agreement between the company to be incorporated and the 1st Defendant, and pending the execution of this written tenancy agreement, the tenant was allowed to take possession of the said land provided that the tenant shall apply "to the relevant authorities for the necessary licences for the operation of the entertainment outlet and the erection of structures". the plaintiff was subsequently recognized by the 1st Defendant as the tenant of the said land. So