Lee Swee Seng JC:

PROLOGUE

[1]On the surface, this is a seemingly simple and straight-forward suit brought by the plaintiff bank to recover the amounts due to it from the borrower and its guarantors of same credit facilities granted to it which facilities were subsequently restructured. However, the defendants contended that there is more to it than meets the eye. The facilities, it was said, were all in respect of a building that the plaintiff wanted to lease for long-term which was to be constructed and furnished by the first defendant with the facilities extended to it by the plaintiff bank. The building is called Wisma Char Yong (‘Wisma CY’). There was also another adjacent piece of land which acquisition was financed by the plaintiff for a building to be constructed thereon with the plaintiff being given a first right of refusal to lease the building when completed.

[2]The defendants contended that it was a right-pocket to left-pocket deal for the plaintiff where the rental it has to pay is deducted at source from the monthly instalments of the first defendant. There was hardly any risk to the defendants and every likelihood of capital appreciation of the properties in years to c