JUDGMENT

Azmi CJ (Malaya):

This is an appeal against the judgment of the High Court at Malacca under which the appellants as authorised insurers were ordered to pay to the respondents a sum of $2,777.55 being a judgment, including costs, obtained by the respondents against one Abdul Karim bin Mohamed Nor alias Hashim bin Mohamed Nor, in reference to the negligent driving of a motor car No SR 4805 by the said Abdul Karim.

There were several grounds of appeal, but after objections made by Mr. Cashin for the respondents to the other grounds Mr. Sault proceeded on the following two grounds only: -

The learned trial Judge ought to have held in any event that Lau Teek Siew had no insurable interest in the driving of the insured car No SR 4805 by Karhn bin Mohamed Nor who was alleged to have driven with Lau Teck Siew's consent but not as his servant or agent.

The learned Judge was wrong in law in holding that the said agreement was an agreement to sell or a conditional contract of sale or any incipient hirepurchase agreement.

The learned trial Judge in his judgment says:

In view of what I have stated above and in view of the fact that the Trading Company regarded themselves as the owners of the car until they transferred it to the finance company with whom Karim was brought willy-nilly into a contract of hire-purchase, Lau Teck Siew had an insurable interest in the car on the date of the accident and the car was being driven by Karim on the implied order or with the implied consent and permission of Lau Teck Slew. The defendants are therefor liable under their contract of insurance.

The facts of this case show that the motor car SR 4805 was originally bought in Singapore by Lau Teck Siew on behalf of Sin Thye Hin Trading Co. of which the said Lau Teck Siew was a partner. Following the practice of the company, the car was registered in the name of Lau Teck Siew and was subsequently sent to the company's office at Malacca for the purpose of a sale.

At the trial the respondent did not give or call any evidence and all the witnesses in this suit were called by the appellants.

According to the local manager at Malacca, PW3 Ng Kah Chee, the car was sold to Abdul Karim bin Mat Nor, alias Hashim bin Mat Nor whom I shall refer after this as Abdul Karim, on 9 February 1961.

On that date agreement D6 was signed by Abdul Karim and Mr. Ng on behalf of the company. The agreement reads as follows:

Agreement made this 9 February 1961 between .... (hereinafter called the vendor) and Mr. Karim bin Mat Nor (hereinafter called the purchaser) That the vendor agreed to sell and the purchaser agreed to purchase Opel Rekord Car No SR 4805 model 1956 insurance expires on .... for the sum of dollars three thousand four hundred ($3,400).

The first to be paid by the purchaser the sum of dollars one thousand only ($1,000) as deposit on delivery will be paid of the car and the balance of dollars two thousand four hundred on or before 30 June 1961.

In the event of the purcraser's failing to pay the balance, the vendor shall have the right to seize the car and forfeit the deposit paid by the purchaser.

The purchaser shall be responsible for ainy accident or summons during the time the car is in his custody.

It would be seen from this document that the price of the car was fixed at $3,400 and it is also provided in the agreement that Abdul Karim has to pay a deposit of $1,000 and that the balance to be paid at the end of the same month.

According to Abdul Karim, what happened was that he paid $200 the same day and that it was agreed that he has to pay $137.50 monthly thereafter for six months. It would be seen that the total of these payments together with the initial payment of $200 would come to $1,025. Abdul Karim unfortunately could not tell the Court what documents he signed and why, but from the evidence of Ng Kah Chee it is apparent that Abdul Karim did not pay the $1,000 dowm as agreed in exh. D6, and that he was allowed to pay this socalled i