JUDGMENT

Anand Ponnudurai J:

Introduction

[1] A core function of a licensed bank is to extend credit facilities to individuals and corporations. In many instances, borrowers secure those loans by charging their properties to the bank as collateral. Should the borrower (chargor) default on the loan, the bank (chargee) may initiate foreclosure proceedings by seeking the court's assistance for an order of sale by public auction of the charged property. Such proceedings are governed by ss 256 and 257 of the National Land Code 1965 (hereinafter referred to as "NLC 1965") as well as O 83 of the Rules of 2012 (hereinafter referred to as "ROC 2012"). The present matter falls within this framework.

[2] The Plaintiff Bank as the chargee herein commenced foreclosure proceedings against the defendants as chargor in light of sums due under a loan agreement, seeking inter alia an order that six plots of vacant land held under H.S.(D) 31143, PT 892 s 29; H.S.(D) 31144, PT 893 s 29; H.S.(D) 31145, PT 894 s 29; H.S.(D) 31146, PT 895 s 29; H.S.(D) 31147, PT 896 s 29; and H.S.(D) 31148, PT 897 s 29, Town of Klang, District of Klang, State of Selangor Darul Ehsan (hereinafter referred to as "the said properties") be sold by public auction under ss 256 and 257 NLC 1965 as well as O 83 ROC 2012.

[3] Having considered the various affidavits filed by parties and upon hearing learned Counsel with the aid of their written submissions, I allowed the plaintiff's application in encl 1 with costs.

[4] The Defendant has since filed an appeal against my decision allowing encl 1 and I will thus set out the salient background facts, the parties' respective contentions and the reasons for my decision.

Background Facts

[5] At the material time, the plaintiff had granted a Term Loan Facility in the sum of RM720,000.00 to the 1st Chargor/1st Defendant and the 2nd Chargor/Deceased, for the purpose of refinancing the said properties subject to the terms and conditions of the Letter of Offer dated 28 April 2008 (hereinafter referred to as "the said Letter of Offer")

[6] As an indication of their agreement to the terms and conditions contained in the said Letter of Offer, the defendants executed a Loan Agreement dated 8 September 2008 (hereinafter referred to as "the said Facility Agreement") with the plaintiff.

[7] At all material times, the defendants as the co-borrowers and the co-registered proprietors of the said properties, had agreed to charge the same as security for the repayment under the said Loan Facility by the defendants on 8 September 2008 by executing a Memorandum of Charge over the said properties. The Charge was subsequently registered on 24 September 2008 with the Registrar of Titles, Selangor Darul Ehsan vide Presentation No 93307/2008 (hereinafter referred to as "the Charge Agreement").

[8] However, the defendants breached the terms and conditions of the said Letter of Offer, the Facility Agreement, the Charge Agreement and its Annexure by failing, refusing and/or neglecting to repay the outstanding sums despite demands made by the plaintiff for payment of the outstanding amount together with continuing interest, which led to a Letter of Demand dated 10 February 2017 and a Letter of Termination dated 1 March 2017 addressed to the defendants.

[9] The Plaintiff thereafter issued a Statutory Notice of Default in respect of the Charge pursuant to NLC 1965 (Form 16D) (hereinafter referred to as "the said First Form 16D") dated 17 March 2017 to the defendants, requiring them to remedy the default under the said charge and demanding that the total outstanding sum of RM455,770.73 as at 1 March 2017 be paid by the defendants within one (1) month from the date of service of the said First Form 16D.

[10] Notwithstanding the foregoing, as at the date of the hearing, the defendants continued to default in the payment of monthly instalments under the said Loan Facility. Despite repeated demands by the plaintiff, the defendants have refused and/or failed and/or neglected to