JUDGMENTBY: EDGAR JOSEPH FCJ

(delivering judgment of the court):

Preliminary

This appeal is from an order of the High Court, Shah Alam, allowing an application by way of Original Summons by Arab-Malaysian Finance Bhd, the respondent herein (the Lender), for an order under s 256 of the National Land Code 1965 (the Code) for the sale of certain land comprised in LO No 28, Jalan 223, Section 20, QT(R) 6300 Bandar Petaling Jaya (the Land) which was the subject matter of a charge registered in its favour by Lori (M) Bhd, the appellant herein (the Borrower Company) given by way of security for a loan of RM 4.3 million (the Charge). The judge had, of course, made the order aforesaid because he was satisfied that the Borrower Company had failed to satisfy him of the existence of cause to the contrary as required by s 256(3) of the Code.

The Background Facts

The undisputed facts were that in the midst of a takeover battle, the directors of the Borrower Company had on 19 November 1991 obtained an order of the High Court appointing an Interim Receiver to protect the Borrower Companys assets and it is he who resisted the Originating Summons to enforce the Charge, upon the ground that