(delivering the judgment of the Court): In this case the respondent, a timber logger claimed that the appellant, a logging company had removed and converted to its use 700 tons of timber belonging to the respondent. He sued the appellant for compensation of $110,000 for the loss of these timber logs, plus interest at 6% per annum from the date of the conversion and cost of the suit. The appellant denied the allegation and in addition thereto made a counterclaim against the respondent for a total sum of $24,669.25 which was made up of two amounts $18,862.25 being the amount of royalty and $5,807 being the amount of Forest Department closing fee. The trial took place before Mr. Justice Abdul Razak who gave the judgment in favour of the respondent and hence this appeal.

The question involved in this appeal is whether the conclusion reached by the learned judge is justified by the evidence before him.

The appellant holds a timber concession covering a vast area of jungle land in Jengka Pahang. It also has a sawmill in the area for processing its own timber. The timber area is divided into several smaller areas, each known as a scheme. The appellant first fell and removed