JUDGMENT

Ranita Hussein JC: The plaintiff filed an originating summons under O. 83 of the High Court Rules 1980 praying for an order for the sale of land charged to it by the defendant.

In his affidavit in support of the summons the plaintiff averred that a facility amount of RM583,000 had been granted to the defendant by the plaintiff and this was secured by a charge of the land in question by the defendant to the plaintiff. The plaintiff clarified that the facility amount was granted under the Islamic concept of Bai-Bithaman Ajil which, as practised by the Islamic Bank, involved three simultaneous transactions which in the instant case were as follows:

(i) On 2 March 1984 the defendant sold to the plaintiff a piece of land for RM265,000 which sum was duly paid to him; (ii) On the same date, the plaintiff resold the same piece of land to the defendant for RM583,000 which amount was to be paid by the defendant in 180 monthly installments, (iii) Also on the same date, the said land was charged to the plaintiff by the defendant as security for the debt of RM583,000.

These transactions were preceded by a letter of offer by the plaintiff describing the terms involved under the Bai-B