K.C. Vohrah J:

This is a Sessions Court matter which was taken up on appeal before me.

A company, Denson & Co. (the borrower), applied to the respondent bank (the bank) for a loan of RM60,000 to be secured by way of legal charge over a piece of property held under PT(M) 421 Lot 7975 Mukim Klang.

The appellants, solicitors and partners of a firm (the solicitors), were retained by the bank on 27 February 1987 as their solicitors in respect of the loan transaction.

On 27 June 1987 the solicitors advised the bank that the documents in respect of the loan had been completed and that the property which was approved to be charged to the bank was free from encumbrances and that the charge had been duly presented for registration.The solicitors further advised the bank to release the loan to the borrower.

On 8 July 1987, however, the solicitors informed the bank that the said property was actually caveated and was not free from encumbrances.But 5 days earlier acting on the earlier advice from the solicitors, the bank had released the RM60,000 to the borrower.

The bank sued the solicitors for negligence and claimed damages in the sum of RM66,859.40 (made up of the amount released and