Abdul Malek Ahmad J:

It is not disputed that on 13 August 1977 the defendant as registered proprietor had executed a charge in favour of the plaintiff of sixty-six pieces of land all in the Mukim of Kampar, Perak (Schedule A) to secure the repayment of a loan up to a limit of RM560,000 together with interest at the rate of 12% per annum on monthly rests and that on 23 March 1983, the defendant had executed a charge of two hundred and fifteen pieces of land, also all in the Mukim of Kampar, Perak (Schedule B) to secure the repayment of a loan up to a limit of RM3.5 million together with interest at the rate of 16% per annum on monthly rests. What is in dispute is the effect of the plaintiff's letter dated 7 October 1988 stating that they had exercised their rights to consolidate both the accounts secured by the charges for the lands in both Schedule A and Schedule B.

In their originating summons filed on 5 July 1989, the plaintiff had applied to sell the lands in Schedule A only to realise the sum of RM6,589,256.93 owing as at 7 June 1989 together with interest payable at 17% per annum on monthly rests on the balance of RM6,544,689.97 and at the rate of 12.5% per annum on m