JUDGMENTBY: MOHAMED AZMI FJ

(delivering the Judgment of the Court): This is an appeal against the decision of Peh Swee Chin, J. dated November 12, 1982 in which he dismissed the appellant/chargors Originating Motion to set aside the order of the Collector of Land Revenue, Klang made pursuant to Section 263 of the National Land Code that the land held under E.M.R. 7188, Lot 1800, Mukim of Klang, be sold by public auction at a reserved price of one million ringgit for failure to comply with two notices of default in Form 16D to pay the sum of M$ 2,840,826.94 due to the respondent/chargee under charge presentation No. 31438, Volume XVII, Folio 97 dated April 10, 1965 and No. 34236, Volume XXI, Folio 63 dated September 21, 1967.

The evidence before the learned Judge consisted of an affidavit in support of the motion sworn on July 30, 1982 by Norma bt. Mohd. Noar, a Secretary of the appellant and an affidavit in reply sworn on September 6, 1982 by Ng Shang Peng, the Manager of the Kuala Lumpur Main Office of the respondent. The facts in both affidavits were never in dispute and they could be stated as follows. The land EMR 7188, Lot 1800 registered in the name of the appellant, was charged to the respondent on April 10, 1965 to secure loan facilities in the sum of $ 400,000/-. On September 21, 1967, a second charge over the same land was created by the appellant to secure a further loan facility in the sum of $ 180,000/-; thus increasing the loan facilities to$ 580,000/-. Both the charges were executed by the appellant in favour of the respondent to secure one overdraft account namely Account No. 3-205. When the appellant defaulted in repaying the overdraft facilities, respondent served a letter of demand on the appellant dated October 9, 1980 demanding repayment of the sum of $ 2,374,382.24 due with interest within seven days (see exhibit "MBB1"). The appellant failed to comply with the letter of demand, and the respondents next step was to serve the appellant with a statutory notice in Form 16D under Section 254 of the National Land Code dated November 13, 1980 demanding the said sum of $ 2,374,382.24 as being the balance due at September 10, 1980 and requesting it to remedy the breach within one month (see exhibit "NMN 1"). Before the expiry of the remedial period of one month, for reason which was not disclosed in the affidavit of Ng Shang Peng, another notice in Form 16D dated November 28, 1980 (exhibit "NMN 2") containing identical demand and identical words and schedule as exhibit "NMN 1" was served on the appellant. The two identical notices under Section 254 NLC, though dated differently are now reproduced:-

NATIONAL LAND CODE

FORM 16D

(SECTION 254)

NOTICE OF DEFAULT WITH RESPECT TO A CHARGE

To: Syarikat Kewangan Melayu Raya Sdn. Bhd.,

Lot 14.07, 14th Floor, Wisma Stephens,

88, Jalan Raja Chulan, Kuala Lumpur.

Chargor under the Charges described in the schedule below of the land

so described.

Whereas you have committed a breach of the provisions of these Charges

by failing to make payment on demand the sum of Ringgit 2,374,382.24

being the whole outstanding balance on your account as at September 10,

1980 with interest thereon at the rate of 9% p.a. with monthly rests

from September 11, 1980 to the date of payment, or any part thereof

pursuant to a Notice in writing dated October 9, 1980 and received by

you on or about October 9, 1980.

And whereas the breach has continued for a period of at

least one (1) month prior to the date of this Notice; we, as Chargee,

by virtue of the powers conferred by Section 254 of the National Land

Code, hereby require-you within the period of one (1) month from the

service of this Notice to remedy the breach.

And take notice that if you fail to rem