Gunn Chit Tuan SCJ:

This was another appeal involving the interpretation of a deed of assignment executed on 3 September 1983, between Hipparion (M) Sdn. Bhd. (the defendant) as assignor of the one part and Chung Khiaw Bank Ltd. (the plaintiff) as assignee of the other part.

Briefly the material facts, which are not in dispute, are that on 3 September 1983, the plaintiff, a licensed bank, entered into an agreement with the defendant, an incorporated company, whereby the plaintiff granted a loan of one million ringgit to the defendant repayable with interest thereon at the rate of 13.5 per cent per annum or at such rate as the plaintiff may specify, from time to time, in accordance with the terms and conditions specified in the said agreement. It was also provided in the said agreement that the defendant would remain in possession of a property known as the Third Floor of a building standing on Holding 355, Town Subdivision 14, North East District, Penang, as a contractual licensee only of the plaintiff. It was further provided in the said agreement that in the event of default being made by the defendant in the payment of any one or more of the instalment payments covenant