JUDGMENT

This is an appeal by the plaintiff against the decision of the Senior Assistant Registrar refusing the plaintiff's application for summary judgment under O. 14 of the Rules of the High Court 1980.

The plaintiff is a company incorporated in Malaysia with its registered office at Suite EF, 17th Floor, Bangunan Angkasa Raya, Jalan Ampang, Kuala Lumpur. The defendant is a commercial bank licenced under the Banking Act with its office at Ground Floor, Bangunan Kuwasa, Jalan Raja Laut, Kuala Lumpur.

In its statement of claim the plaintiff averred that at all material times, it was a customer of the defendant bank and operated a current account No. 55-5464. At the material times, the plaintiff's overseas buyers had paid to the credit of the plaintiff a large sum of money on account of its trading transactions. Amongst the payments made by the plaintiff's overseas buyers to the defendant bank was a total sum of US$336,657.90 and another RM153,557 which had not been credited to the plaintiff's account. The particulars of the sums not credited to the plaintiff's account were stated in para. 6 of the statement of claim. Paragraph 6 of the statement of claim states as follows:

6. Particulars

Serial No. OBC No. Date Amount

1. 79146 25 September 1979 US$ 47,360.00

2. 79147 25 September 1979 US$ 54,934.40

3. 79148 25 September 1979 US$ 53,440.00

4. 79150 25 September 1979 US$ 52,541.06

5. 79153 27 September 1979 US$ 10,933.29

6. 79154 27 September 1979 US$ 6,762.15

7. 79155 27 September 1979 US$ 5,653.96

8. 79156 27 September 1979 US$ 4,093.20

9. 79162 27 November 1979 US$ 75,162.04

10. 79163 14 December 1979 US$ 25,777.80

US$336,657.90

11. 79166 24 December 1979 RM153,557.00

The plaintiff alleged that the total sum of money stated in para. 6 had been duly received by the defendant bank but had not been credited to the plaintiff's account. The plaintiff averred that on 18 March 1985 it caused a letter of demand in respect of the sum of US$336,657.90 and RM153,557 to be sent to the defendant bank asking the defendant to pay within forty-eight hours upon the receipt of the letter of demand. According to the plaintiff the defendant failed, neglected and/or refused to pay the said sum. The plaintiff's claim is therefore for the sum of US$336,657.90 and RM153,557 plus interest at the rate of 8% from 25 September 1979 to the date of full realisation and cost.

The defendant in its statement of defence denied all the allegations made by the plaintiff in the statement of claim. The defendant however admitted receiving the money but averred that the bills were duly endorsed by the plaintiff to the defendant bank from time to time and the proceeds recovered therefrom were duly credited to the outstanding account of NKM Holding Sdn. Bhd. (hereinafter referred as the "holding company"). The defendant further averred that the plaintiff and its holding company were trustees, agents and bailees of the defendant bank for all the goods and merchandise covered by the bills and in particular the eleven bills referred to in para. 6 of the statement of claim. The realised proceeds of the said eleven bills were duly credited to the holding company's account to settle and/or pay off the amounts advanced by the defendant bank towards account of the outstanding facility. The defendant stated that the plaintiff had endorsed the bills of lading and the titles of the goods to the defendant bank at the time tendered and had therefore discharged the goods to the defendant. The defendant averred that the proceeds from the payment of the said eleven bills by the overseas buyers were used to settle the account of the holding company at the request of the plaintiff.

In his affidavit affirmed on behalf of the defendant on 8 May 1985, Mr. Lam Yik Meng averred that the plaintiff had transferred the eleven bills to NKM Holdings Sdn. Bhd. and had authorised the defendant to credit the proceeds of the eleven bills to the account of NKM Holdings Sdn. Bhd. In his subsequent