JUDGMENT

Nik Hashim J:

Application

The plaintiff by an originating summons applied under s. 327 of the National Land Code 1965 (the Code) for the following remedies:

(a) that the private caveat lodged by the defendant against the land held under GM 4252, Lot No. 4348, Mukim of Sura, District of Dungun, Terengganu (the said land) be removed forthwith;

(b) that the defendant pay damages to the plaintiff for the losses incurred by the plaintiff as a result of the entry of the said private caveat;

(c) that the defendant do indemnify the plaintiff against any claims that the purchaser of the said land may make against the plaintiff;

(d) costs.

Background

The plaintiff by a letter dated 23 October 1983 granted a loan of RM1,780,000 to one MAE Sdn Bhd (the borrower). The loan was guaranteed by the defendant herein and another individual. The loan was secured by, inter alia, a charge dated 22 March 1984 over the said land and a charge over another property both of which under third party charges created by the defendant herein who was the registered proprietor thereof.

The borrower defaulted in repayment of its loan and the plaintiff filed a suit at the Kuala Terengganu High Court under Su