Sulong Matjeraie J:

At all material times, the plaintiff was engaged in trading activities involving the import of logs and their subsequeuent export and/or sale of the imported logs to local sawmills in the district of Tawau, in the State of Sabah.

The Following Are The Statements Of Agreed Facts Of Both Parties

(1) At all material times, the Ministry of Primary Industries Malaysia had approved the plaintiff's application to import 100,000 cubic meters (m3) of logs for sale to local sawmills in Tawau as well as to import 50,000 m3 of logs for exporting sale;

(2) On 18 January 1997 the defendant seized 3,056 logs comprising of 980 logs which were in the process of being loaded onto the vessel MV Able Helsman and a further 2,076 logs which were still at Wallace Bay, Tawau;

(3) At the time of the said seizure, the 980 logs measured 7,072.44 m3 which was valued at RM2,263,180.80 at the material time;

(4) At the time of the said seizure, the 2,076 logs measured 15,805.20 m3 which was valued at RM6,005,976 at the material time;

(5) At the date of the said seizure, the plaintiff still had an unexhausted quota of 67,830 m3 logs to be imported for the purpose of supplying to local sawmills in Tawau with a prevailing market value of RM400 per m3;

(6) At the date of the said seizure, the plaintiff still had an unexhausted quota of 36,340 m3 logs to be imported for the purpose of exporting them with a prevailing market value of RM623 per m3;

(7) On 31 March 1997 the Tawau Magistrate's Court ordered the 3,056 logs to be returned to the plaintiff as being entitled to possession thereof;

(8) On 1 April 1997 the defendant returned to the plaintiff the said 3,056 logs.

From these statements of agreed facts three significant points need to be highlighted:

(1) At the date of the said seizure, the plaintiff still had an unexhausted quota of 67,830 m3 logs to be imported to supply the local sawmills in Tawau with a prevailing market value of RM400 per m3 and an unexhausted quota of 36,340 m3 logs to be imported for the purpose of exporting them with a prevailing market value of RM623 per m3;

(2) It was also agreed in the statement of agreed facts that the 980 logs measuring 7,072.44 cubic meters was valued at RM2,263,180.80 at the time of the seizure and the 2,076 logs measuring 15, 805.20 cubic meters was valued at RM6,005,976 at the time of seizure making a grand total of RM8,269,156.80;

(3) On 31 March 1997, the Tawau Magistrate's Court ordered the 3,056 logs seized by the defendant to be returned to the plaintiff as being entitled to possession thereof and this was done by the defendant on 1 April 1997.

Hearing Before YA Dato' Azhar Ma'ah

This case was initially heard by YA Dato' Azhar Ma'ah on 17 November 1999. In order to expedite the conclusion of this case, both parties agreed that I should continue with the hearing of this matter. At the hearing before me on 17 March 2004, I directed both counsel for each party to check the transcript of the notes of proceedings recorded and made under the hands of YA Dato' Azhar Ma'ah who had been transferred to Peninsula Malaysia. Both parties were required to give their approval or otherwise on the correctness of the transcript made. On 26 March 2004 both parties accepted that the transcript was a proper and right record of the earlier proceedings before YA Dato' Azhar Ma'ah, although learned counsel for the defendant placed a condition by reserving its right to recall and cross examine the last witness of the plaintiff Encik Abdul Rasad bin Adam (SP6). This was agreed to by the plaintiff and was therefore allowed by the court. Consequently Encik Abdul Rasad bin Adam (SP6) was, with the consent of the learned counsel for the defendant, recalled and underwent the due process of examination-in-chief, cross examination and re-examination by both counsel. The plaintiff called two other witnesses, PW7 _ Haryanto Kwan, holder of Indonesian Passport No. K929588 from Tarakan, Indonesia, and PW8 Mr.