JUDGMENT

Sofian Abd Razak J:

[1] This is an application (encl. 3) by the plaintiff for an interim injunction to restrain namely:

i) the defendant, its servants or agents from instituting execution proceeding on the charge created vide Presentation No: 5400/1997/Jil 162/Folio 85;

ii) the defendant personally or by his servants or agents from disposing, charging or transfer or any business transaction whatsoever on property held under P.T. 4602 H.S.(MM) 769/93 Mukim Sungai Seluang Daerah Kulim, Kedah;

iii) that the Land Administrator, Kulim, Kedah registered this order in the register book and to give effect to this order;

iv) that costs for this application be taxed and paid by the defendant to the plaintiff forthwith;

v) any other relief deem fit by this Honourable Court.

Factual Background

[2] It is essential to narrate the brief background of this case in order to understand and to give a proper perspective of this application. They are as follows:

[3] The plaintiff was at all material times the registered owner of property held under P.T. 4602 Surat Hakmilik Sementara No: H.S. (M) 769/1993 Mukim Sungai Seluang, Daerah Kulim, Kedah Darul Aman with a postal address No: 41, Jalan Tiram 1, Taman Tiram, 09600 Lunas, Kulim, Kedah (hereinafter called the 'said property'). The defendant was at all material times a company incorporated under the Companies Act 1965 engaged inter alia in the business of acquiring non-performing loan from the financial institutions.

[4] At the time when the plaintiff acquired the said property, he had applied for a housing loan from Standard Chartered Bank Malaysia (hereinafter called 'Standchart') to finance the said purchase. On 22 August 1997, Standchart had approved the housing loan for the sum of RM106,000 interest at 9.5% per month, monthly instalment of RM958.75 and secured by way of first party charge on the said property. The plaintiff had commenced the monthly payment but later had defaulted on its monthly payment. On or about the month of November 2007, the plaintiff was informed by Standchart that it had sold off the non performing loan of the plaintiff to the defendant. On or about 15 January 2007, the plaintiff received a notice from the Land Administrator, Kulim, Kedah through the defendant's solicitor, that the defendant had prayed for an order for sale of the said property charged as security for the housing loan.

[5] In the said letter, the defendant's solicitor also mentioned that it had obtained a vesting order dated 20 November 2007 vide KL High Court O.S. No: D4-24-323-2007 in respect of the said loan.

[6] In support of the application for an injunction, the plaintiff further averred that the defendant was not a financial institution as scheduled under the Banking and Financial Institutions Act 1989 (hereinafter called 'the BAFIA 1989') and is prohibited from applying for an order for sale from the Land Administrator, Kulim, to auction off the said property as it deemed to be a banking business. The defendant was not a licensed financial institution or a licensed money lender and therefore, has no right to impose interest on the non-performing loan of the plaintiff acquired from Standchart.

[7] The plaintiff further stated that the vesting order dated 20 November 2007 transferred and vested all rights, remedies and liabilities of Standchart in respect of the plaintiff's loan, security charge to the defendant was ultra vires , null and void and of no effect as it contravened BAFIA 1989 .

[8] The defendant by relying on the vesting order and filing an application for an order for sale and claiming interest of the loan is wrong in law. The plaintiff had paid the sum of RM7,000 to the defendant on the mistaken belief that the defendant was entitled to claim for the said sum. The plaintiff averred that the defendant's servants or agents has been harassing the plaintiff if there were outstanding amount not paid and the said property would be auctioned off. As a result of the constant harassment by th