[1] There are three appeals before us. The first appeal is filed by the appellant/defendant in respect of the judgment entered by the High Court for the plaintiff in the amount of RM612,000.00; the second appeal by the appellant/defendant relates to the finding of the High Court on liability with damages to be assessed and the third appeal is filed by the appellant/plaintiff against part of the order of the High Court in dismissing part of the plaintiff's claim.

[2] For ease of reference, in this judgment, parties will be referred to as they were in the High Court.

Background

[3] The defendant, Tabung Ekonomi Kumpulan Usaha Niaga (Tekun) Nasional, is an agency under the Ministry of Agriculture & Agro-based Industry ("the Ministry"). It approves and disburses loan and collects repayment of these loans. At the material time, the defendant had approximately 300,000 borrowers.

[4] The collection of monies from borrowers had been done manually. The defendant's officers physically collect loan repayments f