Abdul Hamid Mohamad Chief Justice:

It began on 11 April 1988 when Hong Leong Finance Berhad which subsequently became known as Hong Leong Bank Berhad (‘Hong Leong’) filed an Originating Summons No S6-31-958 of 1988 in the High Court at Kuala Lumpur, for an order for sale. (This Originating Summons was later registered at Shah Alam High Court as Originating Summons No 24-391 of 1990). The Defendants in the Originating Summons were Wong Cham Mew, Low Chin Pau as trustee of the Estate of Low How Siew, deceased, and Tech Lay Realty Sdn Bhd (in Liquidation) (‘Teck Lay Realty’). The order for sale sought was in respect of land comprised in Certificate of Title No 23316, Lot No 1996, Mukim of Semenyih, which was held under Hong Leong's lien holder's caveat, Presentation No 4556/81 Jilid 9 Folio 196. This was sought to satisfy the sum of RM5.5m due and owing by Park Avenue Homes Sdn Bhd (‘Park Avenue’), the borrower, and secured by the said lien holder's caveat.

On 9 August 1991 Wan Yahya J (as he then was) made the order for sale. There was no appeal against the order for sale. Hence there was no grounds of judgment. The land was successfully auctioned on 16 November 1991. The certificate of sale was issued on 18 February 1992.

On 4 December 1993 Staghorn filed a summons-in-chambers praying, first, that it be allowed to intervene in the proceedings and, secondly, that the order for sale dated 9 August 1991 and the auction sale of the said land on 16 November 1991 be set aside. The affidavit in support was affirmed by Set Kon Kim, as the Managing Director of Staghorn, (this Set Kon Kim was the very same person who had earlier signed the sale and purchase agreement, loan documents and correspondences by Teck Lee Realty and Park Avenue as director/managing director of each company respectively). On 30 January [2008] 2 MLJ 622 at 631 1995, Faiza Tamby Chik J made the order allowing Staghorn to intervene in the proceedings. Against this order, Hong Leong appealed to the Court of Appeal in Civil Appeal No B-02-132 of 1995 while Wong Bin Chen, the successful bidder at the auction sale and also an intervener appealed to the Court of Appeal in Civil Appeal No B-02-138 of 1995.

On 27 April 1995, Faiza Tamby Chik J made another order, in substance, setting aside the order for sale and granting other orders enumerated in the said order of 27 April 1995. Against that decision, Hong Leong appealed to the Court of Appeal in Civil Appeal No B-02-183 of 1995. Likewise Wong Bin Chen appealed to the Court of Appeal in Civil Appeal No B-02-228 of 1995.

On 15 June 1995 the Court of Appeal (Zakaria Yatim, NH Chan and Mahadev Shanka JJCA) allowed Hong Leong's appeal in B-02-132 of 1995 and Wong Bin Chen's appeal in B-02-138 of 1995 on the ground that there was no proceeding in existence in the originating summons on 30 January 1995 when the order for intervention was made or even on 4 December 1993 when the summons seeking intervention was issued, see Hong Leong Finance Berhad v Staghorn Sdn Bhd [1995] 2 MLJ

Against this judgment of the Court of Appeal, Staghorn appealed to the Federal Court in Federal Court Civil Appeal No 02-08 of 1996 (B).On 5 August 1997, the Federal Court (Azmi FCJ, Gopal Sri Ram JCA and Haji Abu Mansor Ali JCA) made the following order:

MENDENGAR Peguam-Peguam yang dinamakan di atas MAKA ADALAH DIPERINTAHKAN bahawa Rayuan ini dibenarkan DAN ADALAH DIPERINTAHKAN SELANJUTNYA bahawa Perintah Mahkamah Rayuan bertarikh 15 Jun 1995 didalam keempat-empat rayuan diketepikan dan Perintah Hakim Mahkamah Tinggi dipulihkan semula DAN ADALAH DIPERINTAHKAN SELANJUTNYA bahawa Rayuan Responden ke Mahkamah Rayuan di dalam Rayuan Sivil B-02-132-95, B-02-183-95, B-02-138-95 dan B-02-228-95 ini diserahkan balik ke Mahkamah Rayuan bagi perbicaraan atas kesemua isu-isu yang berada di hadapan Mahkamah Rayuan dalam Rayuan-rayuan Sivil No. B-02-132-95 disatukan bersama B-08-183-95 dan B-02-138-95 disatukan bersama B-02-228-95 termasuk penggunaan budi bicara Mahkama