JUDGMENT

Siti Norma Yaakob JCA:

The proceedings in this appeal were first commenced in the Land Office at Penang. The Land Administrator had, pursuant to an application for the sale of two plots of land charged by the appellant to the respondent, held an enquiry and on 6 October 1997, granted an order for sale under s. 263 of the National Land Code ("the Code") by the issue of Form 16H ("the first order"). Previous to this and between 1982 and 1983, the respondent had granted banking facilities totalling RM40 million to the appellant and those facilities were in part secured by the charge of the two plots of land, the subject matter in the first order.

In the first order, the date for the public auction of the lands was fixed for 11 November 1987, at 10am but the auction did not take place as the parties entered into negotiations for settlement. No settlement was reached however and the respondent applied to the Land Administrator to schedule a new auction date and to fix a new reserve price.

The Land Administrator, called all parties to meet him at his office on 30 May 1997. It was at this meeting that the appellant sought to set aside the first order by applying to re-open the