[1] This is an appeal against the decision of the High Court in Shah Alam which dismissed the claim of the appellant, pursuant to an assignment made under s 4(3) of the Civil Law Act 1956 .

[2] The respondent sub-contracted some building works to LK Ooi Construction Sdn Bhd (LKOC) in relation to the construction of apartment 3B-1 at the Proposed Games Village, Bukit Jalil Kuala Lumpur (sub-contract). To finance the sub-contract works, LKOC obtained an overdraft banking facility from the appellant for a sum of RM3,000,000.00.

[3] For the purposes of securing repayment of the said banking facility, it is a term in cl 4.01(1)(a) of the facility agreement that, LKOC (borrower) was to execute an absolute assignment to the appellant/bank, all monies, interest and rights due to or become due and payable to LKOC under the sub-contract. LKOC executed a deed of assignment in favour of the appellant which forms part of the securities to the banking facility.

[4] Two days after obtaining the letter of offer for the banking facility from the appellant, LKOC notified and requested the respondent (vide a letter dated 3 February 1996) for consent to remit payment of the proceeds under the sub-contrac