JUDGMENT

George Seah FJ:

We allowed the appeal and here are our reasons for doing so.

The facts do not appear to be in dispute and may be shortly stated. On 10 September 1976 Kwong Yik Bank Berhad (hereinafter referred to as the appellant) obtained judgment against Hah Chiew Yin (the bankrupt) in the sum of RM30,000 together with interest and costs. In 1979 a sum of RM15,000 was paid towards reduction of the judgment-debt and by 1981 the balance still due and owing plus accumulated interest was RM30,000 or thereabout. In October 1981 the appellant caused a Bankruptcy Notice to be issued against the bankrupt and this was followed by the Creditor's Petition. On 5 July 1982 both Receiving and Adjudication Orders were made against the bankrupt. The Statement of Affairs filed by the bankrupt showed that there was only one creditor, viz. the appellant. The bankrupt's husband then approached the appellant with a view to effect a settlement in order to enable the bankrupt to apply to the Court to have the adjudication order annulled. With the money provided by the bankrupt's brother-in-law a sum of RM6,000 was paid to the appellant on 28 August 1982 and another sum of RM10,000 was paid on