Hashim Yeop A Sani SCJ

(delivering the Judgment of the Court): This was an appeal against the award of costs by Harun J. in Originating Summons No. A254 of 1984. We dismissed the appeal with costs and we now give our reasons.

The events leading to this appeal may be summarised as follows. On December 8, 1984 the respondent took out an Originating Summons No. A254 of 1984 against both the appellants as defendants. In the Originating Summons a number of declarations were sought for, the main ones being —

(1) a declaration that the acquisition of shares in Bank Bumiputra Malaysia Berhad by Petronas is ultra vires the Petroleum Development Act, 1974;

(2) a declaration that the purchase or acquisition of $2.488 billion "problem loans" of Bank Bumiputra Malaysia Berhad by Petronas is ultra vires the Petroleum Development Act, 1974.

The backdrop of the Originating Summons is an episode in the banking history of this country popularly described as the "BMF scandal". In order to rescue the Bank concerned from getting into a crisis due to bad loans the Petroliam Nasional Berhad (PETRONAS in short) acquired a majority share holding in the Bank. The respondent, exercising what he considered as