JUDGMENT

Mohamed Dzaiddin J:

In this application the plaintiff prays for a declaration that it is not liable to pay the defendant a sum of RM85,069.63 being arrears of service charges and interest due and owing by Hipparion (M) Sdn. Bhd. ("the assignor") to the defendant under the sale agreement dated 13 April 1981 ("the agreement").

The assignor had purchased from the defendant a property known as the 3rd floor of Wisma Penang Garden standing on Lot 777 comprised in Grant (1st grade) No. 12891, S. 14, North East District, Penang ("the said property") and executed the agreement. On 3 September 1983 the plaintiff granted a loan of RM1,000,000 to the assignor to enable the company to complete the purchase of the said property and by way of security the assignor executed a loan agreement and a deed of assignment ("the said assignment") assigning absolutely to the plaintiff all its right, title and interest in and to the said property and under the agreement and the full benefit granted thereby and all stipulations therein contained with all remedies for enforcing the same. In the course of time, the assignor defaulted paying the instalments due to the plaintiff under the loan agreemen