Hamid Sultan J:

This is my judgment in respect of the borrower (‘Shalihudin (defendant)’) and third party (‘Ceramtec’), mortgagor of shares, in essence, claiming against the bank (‘Alliance Bank’) for loss and damage for sale of shares in breach of alleged collateral contract and/or surreptitious sale of the mortgaged shares, and the claim of Alliance Bank against the defendant for the balance sum due and owing under the facility terms.

The parties have agreed that the issue of liability to be decided first and the issue of quantum for loss and damage (if any) can be referred to the deputy registrar for assessment of damages.

This judgment involves two suits, which have been consolidated. The details are as follows:

(a)in Suit No D3–22–1589 of 2008, Ceramtec is the plaintiff, and claims against Alliance Bank for loss and damage arising from the sale of shares. The prayers read as follows:

And the plaintiff claims:

(i)Damages for loss of the benefit of the 11,420,286 shares pledged by the plaintiff to the defendant;

(ii)Further, or in the alternative to (i) above, damages for conversion;

(iii)Further, or in the alternative to (i) and/or (ii) above, damages for misrepresentation;

(iv)Further,