Low Hop Bing J:

Consolidation Of Proceedings

There are two concurrent proceedings before me viz a charge action vide OS 24(31)-31-1987 ("the charge action") filed by the plaintiff Oriental Bank Bhd, now known as EON Bank Bhd ("EON Bank") against the defendant Hotel Flamingo Sdn. Bhd ("Hotel Flamingo") for an order for sale under s. 256 of the National Land Code 1965; and civil suit vide CS No. 22-39-1986 ("the civil suit") filed by Hotel Flamingo against, inter alia, EON Bank for declaratory reliefs and damages.

Both the proceedings had been consolidated and heard by way of a full trial.

Finding Of Facts

Prior to the transactions between EON Bank and Hotel Flamingo, Scotch Leasing Sdn. Bhd. ("Scotch Leasing") had given certain loans to Hotel Flamingo. By way of security, Hotel Flamingo had executed, inter alia, a power of attorney dated 25 May 1984 in favour of one Quah Lian Eng ("the PA from Hotel Flamingo to Quah"). Quah was a nominee of Scotch Leasing and also a director of Lamont Trading. The PA from Hotel Flamingo to Quah concerns Hotel Flamingo's property held under ACT No. 238, Town Area XIX, district of Melaka Tengah ("the property").

The PA from Hotel Flamingo