(delivering the Judgment of the Board): On April 7, 1978 the appellant, the Kong Ming Bank Berhad ("the bank"), issued a specially indorsed writ claiming from the respondent, Sim Siok Eng, the sum of Malaysian dollars $380,172.17, the balance of money lent and interest thereon. The figure was later amended to $421,173.70, being the total of principal and interest owing on March 31, 1978. The only defence of any substance raised by the respondent was the plea that the claim was statute-barred under the provisions of the Limitation Ordinance of Sarawak. The judge in chambers ruled against the plea and gave judgment for the appellant. The Federal Court of Malaysia allowed the respondent's appeal, holding the claim to be barred. The bank now appeals to His Majesty the Yang di-Pertuan Agong.

The respondent was for many years a customer of the appellant bank. On July 25, 1970 his current account was overdrawn in the sum of $3,671.61. Desiring to increase his overdraft facility, the respondent on August 20, 1970 executed a memorandum of charge in favour of the bank to secure a fluctuating overdraft to a limit of $90,000. The security given consisted of two parcels of land in