Peh Swee Chin SCJ:

[1] We are not going to write a judgment on this case, but at the conclusion of hearing of it, learned Counsel for the appellant seemed to have made a somewhat impassioned plea for it. We have decided to accede to it and we hereby do so.

[2] This case raised the question of what is known as a performance bond in relation to an interlocutory injunction to prevent a call or demand on such performance bond. A brief summary of facts is necessary and is set out below.

[3] The facts not in dispute were that the appellant, Esso Petroleum Malaysia Inc, (hereinafter called the buyer) had obtained a contract from Petroliam Nasional Bhd to construct some plant called a slugcatcher for which certain pipes and piping materials were required by a contractor employed by the buyer to build the said plant. The buyer then agreed with the respondent, Kago Petroliam Sdn Bhd, (hereafter called the seller), for the latter to sell and deliver such pipes and materials, (hereinafter called the said goods), from time to time on certain specified dates, to the buyer for the use of the said contractor. Such specified dates were regarded by both partiess as important, especially for the