JUDGMENT

Abdul Wahab Said J:

[1] The plaintiff filed an application under O. 14 Rules of the High Court 1980 against the defendant. The application, which is for the amount of RM531,410.60 incurred under an overdraft facility, was allowed by the senior assistant registrar on 20 October 2005.

[2] Sabah Bank Berhad had given the defendant the overdraft facility with a limit of RM16,800,000. By virtue of a vesting order dated 21 November 2000 all the rights of Sabah Bank Berhad were vested in the plaintiff. Thereafter the overdraft facility was restructured to a term loan facility of RM16,800,000. The defendant defaulted in payment. The plaintiff sent letters of demand for the amount owing. One of the properties charged to the plaintiff was sold and the proceeds utilised towards part settlement of the outstanding sum. The defendant remains indebted to the plaintiff for the amount of RM541,410.60.

The issues raised by the defendant are:

Firstly, whether the plaintiff's imposition of interest is excessive, arbitrary and contrary to public policy;

Secondly, whether the plaintiff has failed to prove loss in their claim for additional or default interest, being liquidated damages or penalt