By this action in encl. 2, the plaintiff sought against the defendant for a declaration that the legal charge by way of the Charge Annexure dated 1 July 1997 (the charge) executed by the plaintiff over a piece of land known as CT 2786, Lot No. 5071, Mukim Senai-Kulai, District of Johor Bahru, Johor (the charged land) is void and of no effect.

The plaintiff is a duly registered company limited by shares under the laws of Malaysia having its registered office at Suite 1307, 13th Floor, Johor Tower, Jalan Gereja, 80000 Johor Bahru, Johor. The defendant is a registered offshore bank situated in the Federal Territory of Labuan, Malaysia, duly registered pursuant to the Offshore Banking Act 1990 (the 1990 Act). From the pleadings, it is not in dispute that at the request of Tok Teck Huat Investment Pte. Ltd. (the borrower), the defendant granted a Term Loan of USD 8, 000,000.00 (the term loan) to the borrower upon the terms and conditions of the Loan Agreement dated 23.6.1997 (the loan agreement). The term loan was secured by a personal guarantee of Tok Teck Huat (the guarantor) by way of a letter of guarantee (the guarantee) and by the charge. By reason of the borrower's defaul