Raja Azlan Shah J:

The plaintiff brought this motion for an interim injunction to restrain the defendant from otherwise dealing, disposing, etc. of a forest area of 1,000 acres known as Block 19 in the District of Chegar, Perah, in the State of Pahang, and for a declaration that the defendant is liable to perform the covenants of an agreement entered between them and dated 30 August 1965.

At the outset it is necessary to say that on a motion like this it is usually undesirable to examine the evidence in detail because it so often happens that at the trial of the action when the witnesses go into the witness-box to give evidence and are cross-examined, the evidence appears in a different light from that in which it appears in cold print.

It is alleged by the plaintiff in the pleadings that there was an agreement entered into between him and the defendant to work the forest area. The official translation of the agreement reads:-

Agreement made this 30 August 1965 between the Managing Director of Sharikat Tenaga Perusahan Balak Damak Berhad, Jerantut, Pahang, with the agreement of Inche Abu Samah bin Idris, the licence-holder of Kawasan Sudah Kerja Block No. 19 in the District of Chegar Perah, hereinafter called the first party, and Inche Tan Bing Hock, Identity Card No. 072508, of Radio Service, Jalan Lintang, Gemas, Negri Sembilan, hereinafter called the second party.

The contents of this agreement are given below, and both parties are bound by them.

1. The first party allows the second party to work and extract timber logs from the jungle area known as Block 19 containing an area of 1,000 acres in the District of Chegar Perah, as approved by the District Forest Officer, Kuala Lipis, Pahang, vide (23) in PHD L 30/65, dated 18 May 1965.

2. The second party agrees to pay the deposit of $2,000 (Two thousand dollars) to the Forest Department as required by that Department and this deposit will be returned to the second party on completion of the work on the area above-mentioned.

3. The second party agrees to pay a premium of $200 per mensem as required by the Forest Department in its letter of approval so long as work is in progress in the forest.

4. The second party will pay all taxes on all products which are connected with Government in respect of the area, as required from time to time.

5. The second party agrees to construct roads and provide transport for the removal of the timber logs.

6. The second party will pay all labourers' wages (salaries) and agrees to take out and pay workmens' compensation policies for the labourers.

7. The first party, being the licence-holder, will make arrangements with the Government concerning the area.

8. The second party agrees to pay to the first party reasonable incidental expenses incurred in his business with the Government whenever he is required to do so.

9. Whenever the timber logs have been removed and sold, the second party agrees to pay to the first party a sum of $2,000 (two thousand dollars) by monthly instalments of $500 (Five hundred dollars). This amount is the total or lump sum in respect of the whole area mentioned above. The calculation of tons is not agreed upon. Payment shall be made at the end of every month until settlement has been made in full.

10. The second party has the right to arrange for the sale of timber logs extracted from the area.

This agreement will be binding upon the successors, heirs and administrators of both parties. We hereby affix our signatures below in the presence of witnesses.

(ABU SAMAH b IDRIS)

Signature of first party.

(TAN BING HOCK)

Signature of second party.

Witnessed by: (Sgd) ?

I/C No NS 178899.

Witnessed by: (Sgd) ?

I/C No. 3076132.

Written by: (Sgd) ?

Public Clerk Licence No. 4/65, Gemas.

Fee Received: $5."

The defence avers that the agreement was between a sharikat * and the plaintiff. The defence also alleged illegality which was made to deceive the public administration in that the licence was not