Abdul Malik Ishak J:

Introduction

The plaintiff, ABDA AIRFREIGHT SDN BHD, was and is at all material times, a freight forwarding and cargo handling company (hereinafter referred to as "ABDA"), while the defendant, was and is our National Flag Carrier that goes by the name of Sistem Penerbangan Malaysia Berhad (hereinafter referred to as "MAS").

By way of a sales agency agreement dated 28 September 1995, ABDA entered into an agreement with MAS (see p. 1 to p. 3 of L15 marked as exh. "D12") which appeared to be mutually beneficial to both parties. There was also an agreement between ABDA and MAS in regard to the "Uplift of Unaccompanied Baggage" dated 22 November 1995 (hereinafter referred to as an "agreement") which can clearly be seen at p. 14 to p. 15 of L15 marked as exh. "D12" and this agreement was worded as follows:

AGREEMENT BETWEEN MALAYSIA AIRLINES BHD

AND ABDA AIRFREIGHT SDN BHD ON

UPLIFT OF UNACCOMPANIED BAGGAGE

Malaysia Airlines (MH) and ABDA Airfreight Sdn Bhd (ABDA) hereby agree to the carriage of unaccompanied baggage for ABDA on MH services as stated below.

1.Sector.

KUL-MAA, KUL-KHI and KUL-DEL.

2.Rate.

2.1Between 1st December 1995 to 31 May 1996.

LD3 rate: