JUDGMENT

Preliminary

This appeal was heard and dismissed on 7 April 1999. My reasons for the decision now follow.

A short but important point of law has been raised in this appeal. At issue is the broad question whether a lender may, without obtaining an order of sale from the court, realise his security consisting of immovable property in respect of which there is no issue document of title and no registered charge.

There are many instances in this country where banks and other financial institutions finance the purchase of delineated parcels without strata titles in multi-storeyed buildings. In the usual case, the lender takes an assignment of the parcel in question together with a charge in escrow as security for the loan. Difficulties arise when the borrower defaults and the lender is desirous of realising his security. The present appeal is one such case. Its factual matrix is as follows.

The Facts

Phileo Promenade Sdn. Bhd. ("the vendor") is a property development company. It owns a piece of land on which it has erected a multi-storeyed building. It is known as "Phileo Promenade". It is situated at a prestigious location in the City of Kuala Lumpur. The building is made up