A court may refuse a stay of proceedings in foreclosure cases where unjustified delays and lack of bona fides by the Defendant are evident.

By Summons-in-Chambers filed on 12.5.97 (Enclosure (59) Cheung Kong Plantations Sdn Bhd (?the Defendant?) seeks an order to stay all pending proceedings in this Originating Summons until disposal of lpoh High Court Civil Suit No. 22-54-97 which suit has since been transferred to the Penang High Court vide Court order issued on 12.5.97. Further and in the alternative, for an order that all pending proceedings be stayed pending further directions of this Court. The basis held out by the Defendant of this application is that the Plaintiff and the Defendant had entered into a Settlement or Compromise Agreement inclusive of the subject matter of this Originating Summons.

BACKGROUND

The background facts as disclosed by the affidavit of Tan Chong Keat affirmed on 12.5.97 [Enclosure (58)], as well as the Court records may briefly be summarized as follows -

(a) The Plaintiffs filed this Originating Summons [Enclosure (1)] against the Defendant on 15.4.86 for an Order for Sale and consequential orders;

(b) Upon the Defendant's Counsel not objecting to the application in Enclosure (1) when the matter came up for hearing on 26.2.87, the Court granted an order- in- terms of the application prayed, issued the Order for Sale, and further directed that the charged properties be sold by way of public auction to settle the sums verified to be then

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outstanding and fixed the date of auction on 1.9.1987.

(c) Consequent upon obtaining this Court order dated 21.8.91, the Bank took the usual steps of the filing of Summons for-Directions and that on the facts of this case, not one, but several Summons-for-Directions for sale of the properties has been filed and that the Plaintiff has not been able to realize and enforce the Order for Sale dated 21.8.91 due to unsuccessful bidding ; to date, a Summons-for-Directions dated 23.6.97 [Enclosure (62)] has since been filed for a fourth auction date;

(d) The Defendant then, vide Summons in Chambers dated 15.4.97 [Enclosure (50) ], applied to set aside the Order for Sale dated C26.12.87, the first return of which application was 13.5.97.

(e) From paragraph 2 of Enclosure (58), on 7.5.97 i.e. about a week prior to the first hearing date of Enclosure (50)].(i.e. 13.5.97) the Defendant in this case, and four other parties (i.e. Tan Chong Keat, Chong Keat Sdn Bhd., Lum Choon Development Sdn. Bhd. and Lum Choon Realty Sdn Bhd.), instituted legal proceedings in the lpoh High Court against the Plaintiff as in Exhibit ?TCK-1? (hereinafter referred to as ?the new suite).

(f) The Plaintiffs in the new suit is claiming for specific performance of the alleged Settlement Agreement, as well as an injunction precluding the Defendant from taking further proceedings pending in the following nine Court proceedings filed in Penang High Court between the period 1986 and 1993 i.e -

(i) Saman Pemula No. 31-235-1 986;

(ii) Guaman 23-341-1986;

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(iii) Saman Pemula No. 31-341-1986 (i.e. this case),

(iv) Guaman 22-276-1 986;

(v) Guaman 22- 278-1986;

(vi) Guaman 22-278-1 986;

(vii) Saman Pemula No. 31-238-1986;

(viii) Penggulungan Syarikat Petisyen No. 28-33-1 990; dan

(ix) Bankrapsi Petisyen No. 29-205-1 993;

(g) The Plaintiffs in the new suit also simultaneously filed a Summons-

Chambers for an interim injunction in the same terms as that prayed for in the main suit, i.e. to restrain the Defendant (Plaintiff in this case) from taking further proceedings in the same nine proceedings filed in the Penang High Court as listed above until final determination of the new suit filed the lpoh Court.

(h) On 12.5.97 Y.A. Justice Dato' Hamid Embong allowed the Defendant's application to transfer the new suit to the Penang High Co