JUDGMENT

Mohd Azmi FCJ:

The historical and factual background leading to this appeal has been fully supplied in the other judgments of my learned brothers which I have had the opportunity to read in draft. Suffice it is to state that the appellants at all relevant times were the registered co-owners of a piece of Malay reservation land in Tampin. When their business associate, one Ismail bin Omar was in need of a loan of RM400,000, he was required by the respondent finance company (hereinafter referred to as 'the respondent' or 'the respondent/ chargee') to furnish security for the personal loan. To assist Ismail, the appellants charged their land to the respondent. After the loan was approved and disbursed, Ismail committed a breach of the loan agreement, and whereupon the respondent in the normal course of financing business, foreclosed the third party security and obtained an order of sale of the property under the National Land Code. To cut the story short, it was then discovered that the third party charge on the Malay reservation land was null and void as at all material times the respondent was never specified a "Malay" under s. 17 read together with the Second Schedule to t