Abdul Malik Ishak JCA:

The Parties

[1] I shall, for convenience, refer the parties in the following manner Arab-Malaysian Finance Berhad will be referred to as the plaintiff, while Razshah Enterprise Sdn Bhd will be referred to as the defendant guarantor.

[2] The plaintiff was, at all material times, a licensed finance company incorporated in Malaysia and presently it goes by the name of Am-Finance Berhad.

[3] The defendant guarantor is a company incorporated in Malaysia and it is the registered proprietor of fifty-three pieces of land held under qualified title deeds HS(D) 6975/81 to 7027/81 Lot No: PT 37692 to Lot No: PT 37744 - all in the Mukim of Ulu Kinta, Perak (hereinafter referred to as "the said lands").

Facts Of The Case

[4] By way of a loan agreement dated 6 July 1983 (see pp 62 to 74 of the Additional Appeal Record ("AAR")), the plaintiff agreed to grant a term loan of RM2.4 million ("the loan") to Wan Mokhtar Wan Endut ("the borrower") upon the terms and conditions stipulated therein. The borrower was one of the directors of the defendant guarantor.

[5] On 16 June 1983, the defendant as a guarantor executed a first legal charge over the said lands in favour of the pla