JUDGMENT

Syed Ahmad Idid JC:

The plaintiff is a company incorporated in Malaysia and has its place of business at Wisma Tun Fuad Stephens, Lot No. 3, SDB Tower, Karamunsing, Kota Kinabalu, Sabah.

Money and Banking in Malaysia by Bank Negara Malaysia, 30th Anniversary Edn. 1959-1989 has this to say;

In 1977, the Sabah Development Bank Berhad was set up by the Sabah State Government to provide for medium and long term loans in Sabah to private and State enterprises. By the 1980's the Agricultural Bank of Malaysia followed by the Sabah Development Bank (plaintiff here) emerged as the leading medium and long term credit institutions while loans by the Sabah Development Bank Berhad were extended to finance a wide range of activities on the agricultural, manufacturing, utilities and the construction of real estate sectors.

The plaintiff claimed against the 1st defendant for the sum of M$188,618.09 being outstanding documentary import and revolving credit facility as at 31 January 1986 extended by the plaintiff to the 1st defendant at the 1st defendant's requests under two letters of offer dated 30 March 1985 and 3 April 1985 respectively together with interest thereon at the rate of 17.5% per