Augustine Paul JCA:

The facts of the case, as submitted by the parties, are that pursuant to a loan agreement dated 28 May 1983 Bank Bumiputra Malaysia Berhad ("the bank") granted a RM30 million loan in US dollar equivalent to Kredin Sdn Bhd ("Kredin"). The loan was secured, inter alia, by a third party charge over a piece of land created by Kekatong Sdn Bhd ("the respondent") in favour of the bank. The charge was registered in the land office on 28 May 1983. One Raju Kerpaya Jayaraman, an advocate and solicitor of the High Court of Malaya practising under the name and style of Jayaraman, Ong & Co, is, and was at all material times, the principal shareholder and controlling director of both the respondent and Kredin. By reason of Kredin's default in settling the loan judgment was entered in favour of the bank on 1 April 1986 for the principal sum of US$17,771,319.06 together with interest thereon in Kuala Lumpur High Court Civil Suit No S23-436-86. The judgment is significant because it confirms the indebtedness of Kredin to the bank. It has not been satisfied to-date. Pursuant to cls. 2 and 15 of the charge, the respondent is deemed to have agreed to pay the bank the debt