Syed Othman FJ

(delivering the Judgment of the Court): The only question to be determined in this appeal is whether on the construction of memoranda of charges, the appellant bank is entitled to charge interest as soon as money in an overdraft facility is drawn, as contended by the chargee appellant (the bank), or from the date of demand as contended by the chargor (the respondent) and accepted by the learned trial Judge.

On April 17, 1970 in consideration of the bank granting the Sarawak Vanguard Limited, now known as the Sarawak Vanguard Sendirian Berhad, Kuching (the Company), overdraft facilities up to $45,000.00, the respondent executed a memorandum of charge over his ½ undivided share and interest in a piece of land and building at Padungan, Kuching, Sarawak, Parcel 138 section 50 Kuching Town Land District held under Kuching Lease of Crown Land No. 4572 of 1956. On December 31, 1970 by a memorandum of increase of amount owing under the charge the amount to be secured was increased to $60,000.00. On July 30, 1973 a second memorandum of charge was executed over the same title granting a further overdraft facility of $250,000. On September 28, 1979 the bank wrote to the respond