Zakaria M Yatim JCA (dissenting):

[1] The respondent filed an action against the appellant in the Sessions Court, Johor Bahru claiming special damages in the sum of RM43,770 together with interest and costs for a breach of an oral agreement. The action was tried in the Sessions Court and at the end of the trial the learned Sessions Court Judge dismissed the respondent's claim with costs The respondent appealed to the High Court. Haidar J allowed the appeal with costs With the leave of this Court, the appellant now appeals to this Court against the decision of the learned Judge.

[2] The appellant is a limited company incorporated under the Companies Act 1965. It was the owner of a machine known as "Hydraulic Press 300 Tons" (the said machine). The appellant had leased the said machine to a company known as Pembinaan Siap Sdn Bhd (the lessee) in Batu Pahat. The lessee had defaulted in paying the instalments due and the appellant wanted to repossess it. The respondent is a limited company incorporated under the Companies Act. On 3 February 1986, the respondent entered into an oral agreement with the appellant in the appellant's office at Johor Bahru whereby the appellant agreed